A Firm Has a Debt-To-Value Ratio of 40%,a Cost of Equity

A firm has a debt-to-value ratio of 40%,a cost of equity of 14%,and an after-tax cost of debt of 5.5%.It plans to launch a new product that will produce cash flows of $398,000 next year and $211,000 in year 2.If this project is about as risky as the firm's existing assets,what is the present value of the project?

A) $458,008
B) $481,707
C) $500,614
D) $532,349