Alpha Industries is considering a project with an initial cost of $9.3 million. The project will produce cash inflows of $1.64 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.00 percent and a cost of equity of 11.53 percent. The debtequity ratio is .73 and the tax rate is 39 percent. What is the net present value of the project?

Multiple Choice

• $890,653

• $770,757

• $454,134

• $856,397

• $734,054