Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .58. Its considering building a new $71.1 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.86 million in perpetuity. There are three financing options:

a. A new issue of common stock: The required return on the companys new equity is 15.3 percent.

b. A new issue of 20-year bonds: If the company issues these new bonds at an annual coupon rate of 7.1 percent, they will sell at par.

c. Increased use of accounts payable financing: Because this financing is part of the companys ongoing daily business, the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .10. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

Required: If the tax rate is 34 percent, what is the NPV of the new plant?