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Dyrdek Enterprises has equity with a market value of $ 1 1 . 1 million and the market value of debt is $ 3 .

Dyrdek Enterprises has equity with a market value of $11.1 million and the market value of debt is $3.70 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 1.9 percent. The new project will cost $2.26 million today and provide annual cash flows of $591,000 for the next 6 years. The company's cost of equity is 11.19 percent and the pretax cost of debt is 4.91 percent. The tax rate is 21 percent. What is the project's NPV?
Multiple Choice
$220,152
$535,418
$379,366
$202,114

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