CP Inc. is currently at its target debt-equity ratio of 1.3.It is considering building a new $45 million plant which is expected to generate annual after-tax cash flows of $5.7 million in perpetuity.There are three financing options:

A new issue of common stock.The required rate of return on the company's equity is 17%.

A new issue of 20-year bonds.If the company issues these new bonds at an annual coupon rate of 9%, they will sell at par.

Increased use of accounts payable financing.Because this financing is part of the company's ongoing daily business, the company assigns it a cost that is the same as the overall firm WACC.Management has a target ratio of accounts payable to long-term debt of .20.(Assume there is no difference between the pretax and after-tax accounts payable cost.)

Assuming the firm's corporate tax rate is 35%, what is the NPV of the new plant?