Alpha Industries is considering a project with an initial cost of $9.2 million. The project will produce cash inflows of $1.72 million per year for 8 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.97 percent and a cost of equity of 11.51 percent. The debt-equity ratio is .72 and the tax rate is 24 percent. What is the net present value of the project?

Multiple Choice $399,668 $484,930 $419,651 $252,705 $466,279