Jupiter Inc. is planning to invest $142,000 in a new project. The companys directors have been provided with the following information:

Expected future cash flows = $25,000 every year for the next six years

Before-tax cost of debt = 7.5%

Current market share price = $37.5

Expected market risk premium = 5%

Risk-free rate = 6%

Beta of the stock = 1.4

Target debt-to-equity ratio = 0.5

Marginal tax rate = 30%

Flotation costs for equity = 3.5%

The net present value of the project is closest to:

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