Alpha Industries is considering a project with an initial cost of $9.5 million. The project will produce cash inflows of $1.98 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.06 percent and a cost of equity of 11.57 percent. The debtequity ratio is .75 and the tax rate is 35 percent. What is the net present value of the project?

$703,834

$395,886

$731,987

$603,286

$633,450