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Dyrdek Enterprises has equity with a market value of $ 1 . 8 million and the market value of debt is $ 3 . 5

Dyrdek Enterprises has equity with a market value of $1.8 million and the market value of debt is $3.55 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 1.6 percent. The new project will cost $2.20 million today and provide annual cash flows of $576,000 for the next 6 years. The company's cost of equity is 11.07 percent and the pretax cost of debt is 4.88 percent. The tax rate is 21 percent. What is the project's NPV?
Multiple Choice
$244,873
$362,068
$227,086
$488,404
$231,884

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