QUESTION 22 Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.88 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt-equity ratio of 85, a cost of equity of 12.8 percent, and an aftertax cost of debt of 5.6 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 2 percent to the cost of capital for such risky projects. What is the minimum cost of the project so NPV of the project is zero