9. Bob's is a retail chain of specialty hardware stores. The firm has 21,000 shares of stock outstanding that are currently valued at $68 a share and provide a 132% rate of return. The firm also has 500 coupon bonds outstanding that have a face value of $1,000, a market price of $1,068, mature in 6 years and have a YTM of 5.648%. The tax rate is 35%. The firm is considering expanding by building a new superstore. The superstore will require an inital investment of $12.3 million and is expected to produce cash inflows of $1.1 million annually over its 10-year life. The risks associated with the superstore are comparable to the risks of the firm's current operations. The initial investment will be depreciated on a straight line basis over the life of the project. At the end of the 10 years, the firm expects to sell the superstore for million. Should the firm accept or reject the superstore project and why? $6.7 A Accept, the project's NPV is $1.27 million. B. Accept, the NPV is $4.89 million. C. Reject, the NPV is $1.06 million. D. Reject, the NPV-$3.27 million. E. Reject, the NPV is -$5.71 million. e with Microsoft Edge-the fast, new browser built for Windows 10. Change my default Don't ask ag