Alpha Industries is considering a project with an initial cost of $8 million. The project will produce cash inflows of $1.49 million per year for 8 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. The debt-equity ratio is .60 and the tax rate is 22 percent. What is the net present value of the project?

Multiple Choice

$358,197

$201,863

$309,978

$295,217

$344,420