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Norris Co. has developed an improved version of its most popular product. To get this...

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Finance

Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 million and will return an additional $13.5 million for 5 years in net cash flows. The firms debt-equity ratio is .25, the cost of equity is 13 percent, the pretax cost of debt is 9 percent, and the tax rate is 30 percent. What is the net present value of this proposed project?

A) $989,760

B) $1,102,459

C) $1,214,318

D) $1,077,180

E) $1,306,411

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