Alpha Industries is considering a project with an initial cost of $8.1 million. The project will produce cash inflows of $1.46 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.64 percent and a cost of equity of 11.29 percent. The debtequity ratio is .61 and the tax rate is 21 percent. What is the net present value of the project?

Multiple Choice

$811,659

$760,627

$937,917

$600,177

$773,008