Alpha Industries is considering a project with an initial cost of $8.5 million. The project will produce cash inflows of $1.51 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.76 percent and a cost of equity of 11.37 percent. The debtequity ratio is .65 and the tax rate is 21 percent. What is the net present value of the project?

Alpha Industries is considering a project with an initial cost of $8.5 million. The project will produce cash inflows of $1.51 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.76 percent and a cost of equity of 11.37 percent. The debt-equity ratio is 65 and the tax rate is 21 percent. What is the net present value of the project? Multiple Choice $494,235 $715,379 O O $670,483 O $867,993 $751,147