Consider a project with the final ATX cash flows for the years 0 to 5 as follows: -1,500,000, 300,000, 400,000, 400,000, 500,000, and 700,000. Your firm is financed with 40% equity, 40% debt, and 20% preferred stock, with after-tax costs of capital of 17%, 10%, and 12%, respectively. You want to maintain this financing mix and the project being considered has the same risk level as the firm. What is the NPV of the project?

• A. $25,017
• B. -$15,242
• C. $0
• D. $34,009
• E. $15,322

Average Return Standard Deviation Frequency Distribution Series Large-company stocks 12.1% 20.2% | Small-company stocks 16.9 32.3 hom. Long-term corporate bonds 6.3 8.4 Long-term government bonds 5.9 9.8 . Intermediate-term government bonds 5.4 5.7 U.S. Treasury bills 3.5 3.1 II. Inflation 3.0 4.1