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Dyrdek Enterprises has equity with a market value of $ 1 . 6 million and the market value of debt is $ 3 . 4

Dyrdek Enterprises has equity with a market value of $1.6 million and the market value of debt is $3.45 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 1.4 percent. The new project will cost $2.16 million today and provide annual cash flows of $566,000 for the next 6 years. The company's cost of equity is 1.99 percent and the pretax cost of debt is 4.86 percent. The tax rate is 24 percent. What is the project's NPV?
Multiple Choice
$472,633
$235,174
$262,447
$242,454
$364,084

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