Question: Bobs Bowling is considering a project with an initial cost of $6.9 million. The project will produce cash inflows of $1.52 million a year for

Bobs Bowling is considering a project with an initial cost of $6.9 million. The project will produce cash inflows of $1.52 million a year for 5 years. The project has the same beta as Bobs Bowling. The firm has an aftertax cost of debt of 7.1% and a cost of equity of 17.7%. The debt-equity ratio is .51 and the tax rate is 34%. What is the net present value of the project? (Round the answer to the nearest $100.) SHOW ALL WORK

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