Question: Alpha Industries is considering a project with an initial cost of $8.6 million. The project will produce cash inflows of $2.04 million per year for

Alpha Industries is considering a project with an initial cost of $8.6 million. The project will produce cash inflows of $2.04 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.79 percent and a cost of equity of 11.39 percent. The debtequity ratio is .66 and the tax rate is 40 percent. What is the net present value of the project?

$656,266

$606,837

$675,018

$758,352

$729,185

$761,647

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