Algoma Incorporated has a capital structure which is based on 30 % debt, 20 % preferred stock, and 50 % common stock. The after-tax cost of debt is 7 %, the cost of preferred is 8 %, and the cost of common stock is 10%. The company is considering a project that is equally as risky as the overall firm. This project has initial costs of $150,000 and cash inflows of $90,000 a year for two years. What is the projected net present value of this project?

$8,224.98

$9,210.67

$9,329.52

$8,966.59

$10,102.60