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Hammurabi Corps proposed project lasts 3 years and has an initial investment of $500,000. The after-tax cash flows are estimated at $120,000 for year 1,

Hammurabi Corps proposed project lasts 3 years and has an initial investment of $500,000. The after-tax cash flows are estimated at $120,000 for year 1, $240,000 for year 2, and $240,000 for year 3. The firm has a target debt/equity ratio of 0.65. The firm's cost of equity is 10.9% and its cost of debt is 4%. The tax rate is 35%. What is the NPV of this project?

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