Great Lakes Shipping is an all-equity firm with anticipated earnings before interest and taxes of $386,000 annually forever. The present cost of equity is 17.1 percent. Currently, the firm has no debt but is considering borrowing $1.48 million at 8.5 percent interest. The tax rate is 35 percent. What is the value of the levered firm?

A) $1,985,251

B) $2,006,519

C) $1,888,47

D) $1,666,667

E) $2,018,181