Bob's is a retail chain of specialty hardware stores. The firm has $18,000$ shares of stock outstanding that are currently valued at $$82$ a share and provide a rate of return of $13\mathrm{.}2$ percent. The firm also has $600$ bonds outstanding that have a face value of $$1,000,$ a market price of $$1,032,$ and a coupon rate of $7$ percent. These bonds mature in $7$ years and pay interest semiannually. The tax rate is $21$ percent. The firm is considering expanding by building a new superstore. The superstore will require an initial investment of $$9\mathrm{.}3$ million and is expected to produce cash inflows of $$1\mathrm{.}07$ million annually over its $10-$year life. The risks associated with the superstore are comparable to the risks of the firm's current operations. The initial investment will be depreciated on a straight$-$line basis to a zero book value over the life of the project. At the end of the $10$ years, the firm expects to sell the superstore for an aftertax value of $$4\mathrm{.}7$ million. Should the firm accept or reject the superstore project and why?

Group of answer choices

Accept; The project's NPV is $$1\mathrm{.}27$ million.

Accept; The NPV is $$4\mathrm{.}89$ million.

Reject; The NPV is $$1\mathrm{.}06$ million.

Reject; The NPV is $$$$1\mathrm{.}15$ million.

Reject; The NPV is $$$$1\mathrm{.}26$ million.