A firm is considering a project that will generate perpetual cash flows of $15,000 per year beginning next year.

A firm is considering a project that will generate perpetual cash flows of​ $15,000 per year beginning next year. The project has the same risk as the​ firm's overall operations and must be financed externally. Equity costs​ 14% and debt costs​ 4% on an​ after-tax basis. The​ firm's D/E ratio is 0.8. What is the most the firm can pay for the project and still earn its required​ return?