You are given the following information about a project:

i) It is expected to generate 6 million per year of revenues perpetually.

ii) The cost of capital for the project is 12%.

iii) The fixed costs of the project are 1 million per year.

iv) The variable costs of the project are 15% of revenues.

v) The annual effective risk-free rate is 4%.

Calculate:

a) The value of the project.

b) The operating leverage of the project.