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Neon Corporation's stock returns have a covariance with the market portfolio of 0495 The standard ion of the returns on the market portfolio is 20

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Neon Corporation's stock returns have a covariance with the market portfolio of 0495 The standard ion of the returns on the market portfolio is 20 percent, and the expected market risk premium is 8.3 percent. The company has bonds outstanding with a total market value of $55.08 million and a yield to maturity of 7.3 percent. The company also has 4 58 million shares of common stock outstanding, each selling for $28. The company's CEO considers the current debt-equity ratio optimal. The corporate tax rate is 34 percent, and Treasury bills currently additional equipment that would cost $4208 milion The expected unlevered cash flows from the equipment are $11.88 million per year for five years Purchasing the equipment will not change the risk level of the company yield 4.2 percent. The company is considering the purchase of Calculate the NPV of the project (Enter your answer in dollars, not millions of dollars, e.g., 1.234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) NPV

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