Based on market values, Gubler's Gym has an equity multiplier of 1.69 times. Shareholders require a return of 11.83 percent on the company's stock and a pretax return of 5.07 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 $323,000 per year for 7 years. The tax rate is 21 percent. What is the most the company would be willing to spend today on the project?

Multiple Choice $1,852,645 $1,645,729 $1,522,978 $1,575,494 $1,621,832