Kitto Electronics has an EBIT of $200,000, a growth rate of 6%, and its tax rate is 40%. In order to support growth, Kitto must reinvest 20% of its EBIT in net operating assets. Kitto has $300,000 in 8% debt outstanding, and a similar company with no debt has a cost of equity of 11%. 3. Refer to data for Kitto Electronics. According to the compressed adjusted present value model, what is Kitto's unlevered value?

a. $1,296,000

b. $1,440,000

c. $1,600,000

d. $1,760,000

e. $1,936,000