Question: Alpha Industries is considering a project with an initial cost of $ 8 . 3 million. The project will produce cash inflows of $ 1

Alpha Industries is considering a project with an initial cost of $8.3 million. The project will produce cash inflows of $1.73 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.70 percent and a cost of equity of 11.33 percent. The debtequity ratio is .63 and the tax rate is 35 percent. What is the net present value of the project?
A. $531,234
B. $590,259
C. $505,937
D. $613,870
E. $362,201

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