meo foods inc. currently has a debt-equity ratio of 25% and maintained a constant level of debt in the recent past. the firm can borrow at a 10% interest rate, and is in the 40% tax bracket. its shareholders require an 18% return. meo is planning to expand capacity. the equipment to be purchased for $15 million would last 3 years, and generate after-tax free cash flows of $5, $8 and $10 million, respectively. meo has arranged a $6 million debt issue to partly finance the expansion. under the loan, the company would pay 10% annually on the outstanding balance. the firm would also make principal repayments of $2 million at the end of each year, completely retiring the issue at the end of year 3. determine whether meo foods should proceed with the expansion