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Dyrdek Enterprises has equity with a market value of $11.2 million and the market value of...

Dyrdek Enterprises has equity with a market value of $11.2 million and the market value of debt is $3.75 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 1.9 percent. The new project will cost $2.28 million today and provide annual cash flows of $596,000 for the next 6 years. The company's cost of equity is 11.23 percent and the pretax cost of debt is 4.92 percent. The tax rate is 35 percent. What is the project's NPV?

$202,146

$533,417

$224,782

$233,049

$376,533

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