Based on market values, Gubler's Gym has an equity multiplier of 1.50 times. Shareholders require a return of 11.07 percent on the company's stock and a pretax return of 4.88 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 $285,000 per year for 7 years. The tax rate is 40 percent. What is the most the company would be willing to spend today on the project?

a. $1,346,661

b. $1,434,071

c. $1,393,097

d. $1,648,304

e. $1,465,920