MVP$,$ Inc., has produced rodeo supplies for over $20$ years. The company currently has a

debt$-$equity ratio of $45$ percent and the tax rate is $21$ percent. The required return on the

firm's levered equity is $14$ percent. The company is planning to expand its production

capacity. The equipment to be purchased is expected to generate the following

unlevered cash flows:

The company has arranged a debt issue of $$9\mathrm{.}36$ million to partlally finance the

expansion. Under the loan, the company would pay interest of $8$ percent at the end of

each year on the outstanding balance at the beginning of the year. The company also

would make year$-$end principal payments of $$3,120,000$ per year, completely retiring the

Issue by the end of the third year.

Calculate the APV of the project. $($Do not round Intermedlate calculations and enter

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

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

APV