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Alpha Industries is considering a project with an initial cost of $7.4 million. The project will produce cash inflows of $1.54 million a year for seven years. The firm uses the subjective approach to assiR discount rates to projects. For this project, the subjective adjustment +1.5 percent added to the firm's WACC. The firm has a pretax cost of debt of 8.6% and cost of equity of 13.7 percent. The debt-equity 0.65 and the tax rate is 35 percent. What is the net present value project?

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