269. Ernst and Frank Companies has a capital structure which is based on 45 percent debt, 10 percent preferred stock, and 45 percent common stock. The after-tax cost of debt is 5 percent, the cost of preferred is 9 percent, and the cost of common stock is 13 percent. The company is considering a project that is equally as risky as the overall company. This project has initial costs of $630,000 and cash inflows of $450,000 a year for two years. What is the net present value of this project? A. $137,008 & $161,600 C. $186,909 D. $201,176 E. $247,706