Question: Alpha Industries is considering a project with an initial cost of $ 9 1 milion. The project will produce cash inflows of $ 2 .

Alpha Industries is considering a project with an initial cost of $91 milion. The project will produce cash inflows of $2.13 milion per year for 6 yars. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.15 percent and a cost of equity of 11.63 percent. The debt-equify ratio is J8 and the tax rate is 21 percent What is the net present value of the proyect?
Multiple Choice
$688.533
$595,846
$551.861
$567,473
$390218
 Alpha Industries is considering a project with an initial cost of

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