Based on market values, Gubler's Gym has an equity multiplier of 1.53 times. Shareholders require a return of 11.19 percent on the company's stock and a pretax return of 4.91 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 $291,000 per year for 6 years. The tax rate is 24 percent. What is the most the company would be willing to spend today on the project?

Multiple Choice

$1,225,302

$1,467,409

$1,267,554

$1,320,866

$1,304,835