MVP, Inc., has produced rodeo supplies for over 20 years. The company currently has a debtequity ratio of 70 percent and is in the 34 percent tax bracket. The required return on the firms levered equity is 17 percent. MVP 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	$17,800,000
1	5,790,000
2	9,590,000
3	8,890,000

The company has arranged a $9.57 million debt issue to partially finance the expansion. Under the loan, the company would pay interest of 12 percent at the end of each year on the outstanding balance at the beginning of the year. The company would also make year-end principal payments of $3,190,000 per year, completely retiring the issue by the end of the third year.

Calculate the APV of the project.