Alpha Industries is considering a project with an initial cost of $9.4 million. The project will produce cash inflows of $2.14 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.03 percent and a cost of equity of 11.55 percent. The debt-equity ratio is .74 and the tax rate is 21 percent. What is the net present value of the project?

Multiple Choice

$296,838

$377,296

$457,785

$396,160

$142,207