Travis and sons has a capital sturcture which is based on 40 percent debt, 5 percent preferrerd stock, and 55
percent common stock. The pre-tax cost of debt is 7.5 percent, hte cost of preferred is 9 percent, and the cost of common stock is 13 percent. The company’s tax rate is 39 percent. The company is considering a project that is equally as risky as the overall firm. This project has initial cost of $325,000 and annual cash inflows of &87,000, $279,000 and $116,000 over the next three years, respectively. What is the projected net present value of this project?