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Alpha Corporation has riskless debt with market value of $10 Million. It has 1 Million shares...

Alpha Corporation has riskless debt with market value of $10 Million. It has 1 Million shares outstanding with share price of $20. Its equity beta is 0.7. Alpha plans to maintain the same capital structure in future. The risk-free rate is 5% and the market risk premium is 10%. The corporate tax rate is 20%. A new project with same risk as existing operations will require an initial investment of $100,000 and produce annual PRE-TAX cash flows of $75,000 for the next three years. Find the NPV of the new project to Alpha.

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