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?

$1,346,661

$1,434,071

$1,393,097

$1,648,304

$1,465,920