Charge-On Electrical Services is considering a project that will save the company $3.5m at the end of the first year, with the cost savings growing at 3% per year indefinitely. The firm has a D/E ratio of .55. The firm’s beta is 1.2, with a risk free rate of 2% and a market risk premium of 8%. The firm’s bonds have 25 years remaining, pay a 5% semiannual coupon, and trade at 106% of par value, which is $1,000. The corporate tax rate is 40%. How much is the project worth to the company?