Question: A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $83,550 for year 1, $166,380

A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $83,550 for year 1, $166,380 for year 2, and $182,090 for year 3. The firm has a target debt/equity ratio of 1.37. The firm's cost of equity is 16.42% and its cost of debt is 11.62%. The tax rate is 34%. What is the NPV of this project?

$137,513

$141,038

$144,564

$148,090

$151,616

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