First and Ten Corporation's stock returns have a covariance with the market portfolio of

$\mathrm{.}0461.$ The standard deviation of the returns on the market portfolio is $20$ percent and

the expected market risk premium is $7\mathrm{.}2$ percent. The company has bonds outstanding

with a total market value of $$55\mathrm{.}9$ million and a yield to maturity of $6\mathrm{.}1$ percent. The

company also has $5\mathrm{.}1$ million shares of common stock outstanding, each selling for $$42.$

The company's CEO considers the firm's current debt$-$equity ratio optimal. The corporate

tax rate is $24$ percent and Treasury bills currently yield $3\mathrm{.}5$ percent. The company is

considering the purchase of additional equipment that would cost $$53\mathrm{.}5$ million. The

expected unlevered cash flows from the equipment are $$17\mathrm{.}75$ million per year for $5$

years. Purchasing the equipment will not change the risk level of the firm.

Calculate the NPV of the project. $($Do not round intermediate calculations and enter

your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,$

$1,234,567\mathrm{.}89$