Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $2.13 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.15 percent and a cost of equity of 11.63 percent. The debt-equity ratio is .78 and the tax rate is 25 percent. What is the net present value of the project?

Multiple Choice

$499,837

$606,469

$524,829

$583,143

$390,218