Alpha Industries is considering a project with an initial cost of $7.7 million. The project will produce cash inflows of $1.35 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.52 percent and a cost of equity of 11.21 percent. The debtequity ratio is .57 and the tax rate is 21 percent. What is the net present value of the project?

Multiple Choice

• $346,351

• $522,185

• $485,413

• $497,319