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Do a seven year project valuation given the information below.             Required return: WACC+1.5 percent...

Do a seven year project valuation given the information below.

            Required return: WACC+1.5 percent

            Initial investment: $7.4 million

Yearly cash inflow: $1.54 million

Cost of debt (pre-tax): 8.6%

Cost of equity: 13.7%

Debt-equity ratio:.0.65

Corporate tax rate: 35%

Use NPV for the decision

Answer choices are as follows:

A) Accept because its NPV is $446,328

B) Reject because its NPV is -$372,963

C) Reject because its NPV is -$446,328

D) Accept because its NPV is $235,738

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