Granite Works is considering an investment project that will initially cost $700,000 and is expected to generate after-tax cash flows of $300,000 per year over the next 4 years. The company maintains a debt-to-equity ratio of 0.75, does not have preferred stock outstanding, and has a tax rate of 21 percent. The company has 25,000 shares of common stock outstanding with a market price of $30 per share. The firm expects to pay an annual dividend of $1.20 per share next year and expects to increase that amount by 5 percent each year. The company's outstanding bonds have a face value of $1,000 each, mature in 16 years, have a coupon rate of 7 percent, and pay interest serniannually. The bonds are currently selling for 115 percent of face value. What is the net present value of this project? $189,264.30 $392,429.14 $421,817.22 $315,475.56 $257.643.58 Previous