Question $1$

$5$ pts

Alpha Industries is considering a project with an initial cost of $$7\mathrm{.}5$ million. The project will produce cash inflows of $$1\mathrm{.}55$ million per year for $7$ years. The project has the same risk as the firm. The firm has a pretax cost of debt of $5\mathrm{.}46$ percent and a cost of equity of $11\mathrm{.}17$ percent. The debt$-$equity ratio is $\mathrm{.}55$ and the tax rate is $39$ percent. What is the net present value of the project?

$$397,552$

$$482,364$

$$463,811$

$$417,430$

$$263,559$