Metallica Heavy Metal Mining Corporation wants to diversify its operations. Some recent financials information on the company is listed below:

Stock Price $$73$

# of Shares $40,000$

Total Assets $$7,600,000$

Total Liabilities $$2,200,000$

Net Income $$440,000$

The company is considering an investment that has the same PE Ratio as the firm. The cost of investment is $$800,000$ and it will be financed with a new equity issue. The return on investment will equal the company$$s current ROE.

Current Book Value Per Share $$135\mathrm{.}00$

New Book Value Per Share $$121\mathrm{.}30$

Current market To Books $0\mathrm{.}5407$

New Market to Books $0\mathrm{.}5409$

Current EPS $$11\mathrm{.}00$

New EPS $$9\mathrm{.}89$

What is the NPV of the investment? If negative please note with minus sign and be rounded to nearest who dollar.

$$ We'll calculate the new equity issued:

New Equity Issued $=$ Cost of Investment $/$ New Book Value Per Share $=$ $$800,000/$ $$121\mathrm{.}306588\mathrm{.}52$ shares

Then, we'll calculate the new net income based on the new EPS: New Net Income $=$ New EPS Number of New Shares $=$ $$9\mathrm{.}896588\mathrm{.}52$ $$65,105\mathrm{.}21$

The NPV of the investment can be calculated as follows: NPV $=$ New Net Income $-$ Initial Investment $=$ $$65,105\mathrm{.}21-$ $$800,000=-$$$734,894\mathrm{.}79$

Explanation:

Calculations for the new equity issued.

$$ Answer

Therefore, the NPV of the investment is approximately $-$$$734,894\mathrm{.}79($rounded to the nearest whole dollar$).$ The negative sign indicates that the investment is not economically viable based on the given information.

Obviously, this is not right and is like fourth time been given wrong answer.

$800000/121\mathrm{.}30$ is $6595\mathrm{.}22$

Please help me with this!!!