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Consider a new business line that your company will start: $6,000,000 5 years Costs to launch the project: Life of the project: Cash inflows from

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Consider a new business line that your company will start: $6,000,000 5 years Costs to launch the project: Life of the project: Cash inflows from the project: Year One Year Two Year Three Year Four Year Five Project Beta Risk-Free Rate Market Risk Premium Default Risk Premium for company's bonds Maturity Risk Premium for company's bonds $ 400,000 $1,700,000 $2,650,000 $3,400,000 $ 950,000 0.83 1.20% 5.55% 1.45% 1.15% What is the NPV of the Project (rounded to the nearest dollar)? Multiple Choice Prey Multiple Choice $7,563,094 O $1,063,093 $1,799,362 $1,563,086 none of the choices is correct

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