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Dyrdek Enterprises has equity with a market value of $11.7 million and the market value of debt is $4.00 million. The company is evaluating a
Dyrdek Enterprises has equity with a market value of $11.7 million and the market value of debt is $4.00 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 2.1 percent. The new project will cost $2.38 million today and provide annual cash flows of $621,000 for the next 6 years. The company's cost of equity is 11.43 percent and the pretax cost of debt is 4.97 percent. The tax rate is 21 percent. What is the project's NPV? Multiple Choice $201,030 $214,939 $382,845 $181,584 $563,858
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