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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

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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: Year Cash Flow 0 123 2 3 $18,200,000 5,720,000 9,520,000 8,820,000 The company has arranged a debt issue of $9.36 million to partially 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. APV Calculate the APV 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., 1,234,567.89) Answer is complete but not entirely correct. $ 902,186.00

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