Digital Organics (DO) has the opportunity to invest $1.09 million now (t = 0) and expects after-tax returns of $690,000 in t = 1 and $790,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 10% with all-equity financing, the borrowing rate is 6%, and DO will borrow $390,000 against the project. This debt must be repaid in two equal installments of $195,000 each. Assume debt tax shields have a net value of $0.35 per dollar of interest paid.

Calculate the projects APV.