Dyrdek Enterprises has equity with a market value of $12.1 million and the market value of debt is $4.20 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 1.7 percent. The new project will cost $2.46 million today

and provide annual cash flows of $641,000 for the next 6 years. The company's cost of equity is 11.59 percent and the pretax cost of debt is 5.01 percent.

The tax rate is 21 percent. What is the project's NPV?

Dyrdek Enterprises has equity with a market value of $12.1 million and the market value of debt is $4.20 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 1.7 percent. The new project will cost $2.46 million today and provide annual cash flows of $641,000 for the next 6 years. The company's cost of equity is 11.59 percent and the pretax cost of debt is 5.01 percent. The tax rate is 21 percent. What is the project's NPV? Multiple Choice $226.693 5526,537 $205,955 3206,301 5377911