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Dyrdek Enterprises has equity with a market value of $12.3 million and the market value of...

Dyrdek Enterprises has equity with a market value of $12.3 million and the market value of debt is $4.30 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.6 percent. The new project will cost $2.50 million today and provide annual cash flows of $651,000 for the next 6 years. The company's cost of equity is 11.67 percent and the pretax cost of debt is 5.03 percent. The tax rate is 40 percent. What is the project's NPV?

Select one:

$525,187

$383,370

$251,702

$210,989

$201,730

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