Ionutzakis

May be the problem should be cracked like this (with some rounding).
1. To discount EBIT in perpetuity you need to find the project rate of return. Thus, the equation is
Kequity = K project + 0.6452 x {K project - K debt};
15% = X + 0.6452 (X - 4%); and you have got  K project = 10.7% for discounting the EBIT cash inflow.
2. PV of cash inflow is (7 mln x [1 - 0.25])/0.107 = 49.07 mln
3. PV of cash outflow, or investments, is (Equity cost = 26 mln PLUS Debt = 20 mln) = 46 mln.
4. NPV = 49.07- 46 = 3.07 mln.
However, i doubt this approach because cash flows must be discounted using WACC. The problem provides only EXPECTED return on equity instead of required one. It seems floating costs are included into a 15% return on levered equity.