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Dyrdek Enterprises has equity with a market value of $ 1 1 . 8 million and the market value of debt is $ 4 .

Dyrdek Enterprises has equity with a market value of $11.8 million and the market value of debt is $4.05 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 $2.40 million today and provide annual cash flows of $626,000 for the next 6 years. The company's cost of equity is 11.47 percent and the pretax cost of debt is 4.98 percent. The tax rate is 21 percent. What is the project's NPV?
Multiple Choice
$212,843
$180,192
$363,179
$543,350
$199,868

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