Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .67. Its considering building a new $65.7 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.82 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 7.2 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 .14. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

Required:

If the tax rate is 30 percent, what is the NPV of the new plant?