Algoma Incorporated has a capital structure which is based on 25% debt, 15% preferred stock, and 60% common stock. The after-tax cost of debt is 8%, the cost of preferred is 9%, and the cost of common stock is 10%. The company is considering a project that is equally as risky as the overall firm. This project has initial costs of $140,000 and cash inflows of $90,000 a year for two years. What is the projected net present value of this project? $17,571.58$21,332.98$17,146.07$19,074.82$18,427.44 QUESTION 22 Great Northern Mining Company is planning to purchase of a $900,000 excavator. The excavator is expected to produce cash flows of $468,500,$459,000, and $200,000 over the next three years. The rate of return on the excavator is: 12.78% 14.10% 12.94% 13.53% 13.94%