If Equity Investors Require a 20% Rate of Return,what Is

If equity investors require a 20% rate of return,what is the maximum acceptable amount of equity financing for a project with cash flows of $2 million a year in perpetuity before tax and interest? The project supports debt of $3 million with a 10% coupon,and the tax rate is 35%.

A) $5.53 million
B) $5.87 million
C) $8.5 million
D) $9.03 million