Problem $14-20$ WACC and NPV $LO3,5$

Lebleu, Incorporated, is considering a project that will result in initial aftertax cash savings of $$1\mathrm{.}83$ million at the end of the first year, and these savings will grow at a rate of $2$ percent per year indefinitely. The firm has a target debt$-$equity ratio of $80,$ a cost of equity of $12\mathrm{.}3$ percent, and an aftertax cost of debt of $5\mathrm{.}1$ percent. The cost$-$saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of $+1$ percent to the cost of capital for such risky projects. 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, rounded to the nearest whole number, e$.$g$.,1,234,567.)$

Maximum cost

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$35,533,981$