Question: Alpha industries is considering a project with an initial cost of 7.7 million. The project will produce cash inflows of 1.35 million per year for

Alpha industries is considering a project with an initial cost of 7.7 million. The project will produce cash inflows of 1.35 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.52 percent and a cost of equity of 11.21 percent. The debt equity ratio is .57 and the tax rate is 24 percent. What is the net present value of the project? $346,351

$525,807

$505,583

$455,025

$433,357

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