Problem $18-18$ Projects That Are Not Scale Enhancing

Blue Angel, Incorporated, a private firm in the holiday gift industry, is considering a new project. The company currently has a target debt$-$equity ratio of $\mathrm{.}40,$ but the industry target debt$-$equity ratio is $\mathrm{.}45.$ The industry average beta is $1\mathrm{.}20.$ The market risk premium is $6\mathrm{.}8$ percent and the risk$-$free rate is $4\mathrm{.}4$ percent. Assume all companies in this industry can issue debt at the risk$-$free rate. The corporate tax rate is $22$ percent. The project requires an initial outlay of $$820,000$ and is expected to result in a $$100,000$ cash inflow at the end of the first year. The project will be financed at the company$$s target debt$-$equity ratio. Annual cash flows from the project will grow at a constant rate of $4$ percent until the end of the fifth year and remain constant forever thereafter. What is the NPV of the project? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$