1. Unique Problem Solvers Inc. is considering a project that will initially cost $830,000 which will generate after-tax cash flows of $215,000 per year for the next 5 years.

The firm has 30,000 bonds outstanding that each have a face value of $1,000, mature in 22 years, have a coupon rate of 5 percent, and pay interest semiannually. The bonds are priced at 88 percent of face value. The firm also has 110,000 shares of common stock outstanding that are trading at $99 per share. The risk-free rate of return is 1.85 percent, the company has a beta of 1.55, and the expected market return is 9.70 percent.

What is the net present value of this project? (10 points)

(Round your intermediate work to at least 4 decimal places.)