Dyrdek Enterprises has equity with a market value of $106 milion and the market value of debt is $345 mlion The ompany is evaluating a new projecthat hamore risk than the firm As a result the company

To calculate the project's NPV, we need to discount the cash flows using the appropriate discount rate. Since the project has higher risk than the firm, a risk adjustment factor of 14% will be added to the cost of equity.

Cost of equity = 10.99% + 14% = 24.99%

The after-tax cost of debt is calculated as follows: After-tax cost of debt = Pretax cost of debt * (1 - Tax rate) = 4.86% * (1 - 0.35) = 3.16%

Now, let's calculate the discounted cash flows for the project:

Year 1: $566,000 / (1 + 24.99%) = $566,000 / 1.2499 = $452,022.42 Year 2: $566,000 / (1 + 24.99%)^2 = $566,000 / 1.5624 = $362,091.74 Year 3: $566,000 / (1 + 24.99%)^3 = $566,000 / 1.9483 = $290,727.89 Year 4: $566,000 / (1 + 24.99%)^4 = $566,000 / 2.4209 = $233,669.26 Year 5: $566,000 / (1 + 24.99%)^5 = $566,000 / 3.0157 = $187,843.85 Year 6: $566,000 / (1 + 24.99%)^6 = $566,000 / 3.7516 = $151,022.36

Now, let's calculate the NPV by summing up the discounted cash flows and subtracting the initial investment:

NPV = -$216,000,000 + $452,022.42 + $362,091.74 + $290,727.89 + $233,669.26 + $187,843.85 + $151,022.36 = -$216,000,000 + $1,677,377.52 = $1,461,377.52

Therefore, the project's NPV is $1,461,377.52