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Digital Organics (DO) has the opportunity to invest $1.01 million now (t = 0) and expects after-tax returns of $610,000 in t = 1

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Digital Organics (DO) has the opportunity to invest $1.01 million now (t = 0) and expects after-tax returns of $610,000 in t = 1 and $710,000 in t=2. The project will last for two years only. The appropriate cost of capital is 13% with all-equity financing, the borrowing rate is 9%, and DO will borrow $310,000 against the project. This debt must be repaid in two equal installments of $155,000 each. Assume debt tax shields have a net value of $0.40 per dollar of interest paid. Calculate the project's APV. Note: Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole number. Adjusted present value

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