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Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for
Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.94 percent and a cost of equity of 11.49 percent. The debt-equity ratio is 71 and the tax rate is 21 percent. What is the net present value of the project? Multiple Choice O O $103.237 $355,576 O O $264,802 $431,432 O $373,354 o
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