5.A company expects to earn $50 million per year in perpetuity if it does not undertake any new projects. The company has an opportunity to invest $13 million today and S7 million in one year in a new project. The new investment will generate annual earnings of S6 million in perpetuity, beginning two years from today. The firm has 16 million shares of common stock outstanding, and the required rate of return on the stock is 10 percent. Ignore taxes and the depreciation.