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Alpha Industries is considering a project with an initial cost of $ 7 . 8 million. The project will produce cash inflows of $ 1

Alpha Industries is considering a project with an initial cost of $7.8 million. The project will produce cash inflows of $1.84 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.55 percent and a cost of equity of 11.23 percent. The debt-equity ratio is .58 and the tax rate is 25 percent. What is the net present value of the project?

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