An all-equity firm is considering the purchase of a new machine for $8 million. The machine would generate annual earnings before taxes and depreciation of $3 million during its useful life of 5 years, and it would be fully depreciated on a straight-line basis over this period. The firm can partially finance the expenditure using a 5-year loan for $5 million. The principal balance would not be due until the very end of the loan period, but interest would be paid annually at the risk-free rate of 8%. The firms unlevered cost of equity is 15% and the corporate tax rate is 25%. What is the APV of this investment? a. $1,538,703.99 b. $4,052,820.31 c. $740,161.98 d. $1,282,482.01 e. $1,139,432.99