Orino Corp. is considering a project that will produce annual pre-tax cash flows of $1.4 million for the next 22 years. The firm has a debt-to-equity ratio of 1.6, where the debt has a yield of 9.0% and the cost of equity is 17.0%.

Assuming a 38% tax rate, what is the WACC for Torino? Round your answer to three decimal places.

_____%

Assuming that the project will be funded in the same manner as Torino's existing capital structure, what is the NPV of the project based on a cost of $10 million? Round your answer to four decimal places.

$_____million

How is this NPV affected if the tax rate is reduced to 32%? Round your answer to four decimal places. (Hint: Remember to adjust the cash flows and the WACC.)

$_____million