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Based on market values, Gubler's Gym has an equity multiplier of 1 . 5 2 times. Shareholders require a return of 1 1 . 1

Based on market values, Gubler's Gym has an equity multiplier of 1.52 times. Shareholders require a return of 11.15 percent on the company's stock and a pretax return of 4.90 percent on the company's debt. The company is evaluating a new project that has the same risk as the company itself. The project will generate annual aftertax cash flows of $289,000 per year for 9 years. The tax rate is 23 percent. What is the most the company would be willing to spend today on the project?Multiple Choice$1,682,313$1,626,236$1,759,264$1,731,793$2,035,703

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