Landmass Industries has $$7,000,000$in excess cash not required for the daily operations of the firm, and its bank will pay only $0\mathrm{.}15\%$interest$.$An advisor is offering a vehicle for investing the excess cash: buy another $($unrelated$)$firm$$s preferred stock that yields $6\%($the preferred dividend$)$paid at the end of each year, and then redemption of the preferred stock at face value paid simultaneously with the third preferred dividend payment.$$Lantern$,$ deeming this a riskier investment than a bank deposit, would discount this investment at $8\%.$

The corporate tax rate on preferred dividends is $25\%$except that $70\%$of preferred dividend income is excluded from taxation $($that is$,$only $30\%$of the preferred dividend is subject to the $25\%$preferred dividend tax$).$Remember$,$ redemptions of original capital are not taxable, but interest and dividends are.

What is the NPV of this opportunity? $($Hint: The Year $0$cash flow is negative $$7,000,000$and positive cash flows occur in Years $1,2,$and $3.)$

Group of answer choices

$$7,056,133$

$-$$$304,421$

$-$$$441,972$

$-$$$231,983$

$$56,133$

$$6,558,028$