A project has an unlevered NPV of $1.5 million. To finance the project, debt is being issued with associated flotation costs of $60,000. The flotation costs can be amortized over the project's 5-year life. The debt of $10 million is being issued at the market interest rate of 10 percent, with principal repaid in a lump sum at the end of the fifth year. If the firm's tax rate is 34 percent, calculate the project's APV.

a. $1,494,028.88

b.$2,384,312

c.$2,744,334

d.$1,909,417

e.$2,441,107

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