Granger productions is evaluating a film project. The president of Granger estimates that the film will cost $20,000,000 to produce. In its first year, the film is expected to generate $16,294,000 in net revenue, after which the film will be released to video. Video is expected to generate $9,912,000 in net revenue in its first year, $2,478,600 in its second year, and $1,043,800 in its third year. For tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. The company's tax rate is 40 percent, and the company requires a 11 percent rate of return on its films. What is the net present value of the film project? To simplify, assume that all outlays to produce the film occur at time 0

Present value of $1 due in n periods Present value of an annuity of $1 per period