9. Hartley Psychiatric, Inc. needs to purchase office equipment for its 2,000 drive-in therapy centers nationwide The total cost of the equipment is $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually forever. Hartley has a debt-to-value ratio of 40 percent based on market values. The firm's cost of equity is 13 percent and its pre-tax cost of debt is 8 percent. The flotation costs of debt and equity are 2 percent and 8 percent, respectively. Assume the firm's tax rate is 35 percent. Ignoring flotation costs, what is the NPV of the proposed project? A. $33,966 B. $65,990 C. $98,542 D. $125,506 E. $128,034 10. Hartley Psychiatric, Inc. needs to purchase office equipment for its 2000 drive-in therapy centers nationwide The total cost of the equipment is $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually forever. Hartley has a debt-to-value ratio of 40 percent based on market values. The firm's cost of equity is 13 percent and its pre-tax cost of debt is 8 percent. The flotation costs of debt and equity are 2 percent and 8 percent, respectively. Assume the firm's tax rate is 35 percent. After considering flotation costs, what is the NPV of the proposed project? A. -$72,957 B. $428 C. $2,091 D. $6,862 E. $178,675