A project with an initial investment for the project is $2.5 million has perpetual cash inflows of $0.225 million per annum beginning in one year.

-The opportunity cost of capital for the project is 12%.

- The project supports borrowing of $1 million.

- The marginal tax rate is 35%.

- The borrowing cost for $1 million of debt is 6% per annum.

If the debt is continually re-balanced, what is the APV of the project?