Alpha Industries is considering a project with an initial cost of $8.2 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67 percent and a cost of equity of 11.31 percent. The debtequity ratio is .62 and the tax rate is 40 percent. What is the net present value of the project?

Multiple Choice

• $581,350

• $418,860

• $645,945

• $671,783

• $553,667