Pink, Inc , is considering a project that will result in initial aftertax cash savings of $1 77 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely The firm has a target debt equity ratio of 75, a cost of equity of 11 7 percent, and an aftertax cost of debt of 4 5 percent The cost saving proposal is somewhat riskier than the usual projects the firm undertakes management uses the subjective What is the maximum initial cost the company would be willing to pay for the project (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e g, 1,234,567 89 ) Maximum cost

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Pink, Inc , is considering a project that will result in initial aftertax cash savings of $1 77 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely  The firm has a target debt equity ratio of  75, a cost of equity of 11 7 percent, and an aftertax cost of debt of 4 5 percent  The cost saving proposal is somewhat riskier than the usual projects the firm undertakes  management uses the subjective What is the maximum initial cost the company would be willing to pay for the project  (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e g, 1,234,567 89 ) Maximum cost

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Question: Pink, Inc., is considering a project that will result in initial aftertax cash savings of $1.77 million at the end of the first year, and

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