Question: Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for

Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.94 percent and a cost of equity of 11.49 percent. The debtequity ratio is .71 and the tax rate is 40 percent. What is the net present value of the project?

A. $373,354

B. $355,576

C. $414,838

D. $103,237

E. $431,432

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