Smiths has a capital structure which is based on 35 percent debt, 10 percent preferred stock, and 55 percent common stock. the pre-tax cost of debt is 6.5 percent, the cost of preferred is 9 percent, and the cost of common stock is 12 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 costs 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?
