Greetings,

Not where I'm going wrong on this question. Would really appreciated any help. Thank you!

Based on market values, a company has an equity multiplier of 1.59 times. Shareholders require a return of 11.43 percent on the company's stock and a pretax return of 4.97 percent on the company's debt. The company is evaluating a new project that has the same risk as the company itself. The project will generate annual aftertax cash flows of $303,000 per year for 8 years. The tax rate is 40 percent. What is the most the company would be willing to spend today on the project?