Alpha Industries is considering a project with an initial cost of $8.1 million. The project will produce cash inflows of $1.46 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.64 percent and a cost of equity of 11.29 percent. The debt-equity ratio is .61 and the tax rate is 39 percent. What is the net present value of the project? Multiple Choice $811,659 $600,177 $937,917 $901,843 If the economy booms, RTF, Inc., stock is expected to return 12 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 79 percent while the probability of a recession is 21 percent. What is the variance of the returns on RTF, Inc., stock? Multiple Choice .052650 .000642 .000813 .028512