Watson, Inc., is an all-equity firm. The cost of the companys equity is currently 12 percent, and the risk-free rate is 5.2 percent. The company is currently considering a project that will cost $11.91 million and last six years. The project will generate revenues minus expenses each year in the amount of $3.37 million.

solve using the figures provided

If the company has a tax rate of 40 percent, what is the net present value of the project?