McGee Computing Service is considering an average-risk project that will cost $92,000 at time zero and is expected to generate annual after-tax cash inflow in the amount of $19,000 for the next 12 years. The firm has 300,000 shares of common stock outstanding at a price of $40 a share, 10,000 shares of preferred stock outstanding at a price of $80 a share, and 2,000 bonds outstanding at a price of 77.40 percent of par. The company’s 9% preferred stock has a par value of $100 each. Its currently outstanding bonds have a face value of $1,000, carry an annual coupon rate of 8%, and will mature in 10 years. McGee’s most recently paid common dividends are $4 a share and the expected growth in dividends is 6% per year indefinitely. The company’s applicable tax rate is 40%. (Assume yearly coupon payments on the bonds.)