Bassett Fruit Farm expects its EBIT to be $385,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.5 percent and the tax rate is 34 percent. The company is in the process of issuing $2.5 million worth of bonds at par that carry an annual coupon of 6.3 percent. What is the unlevered value of the firm?

$2,411,790

$2,091,358

$1,882,222

$2,732,222

$1,694,000