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Please show work and do not round intermediate calculations Digital Organics (DO) has the opportunity to invest Sl .19 million now (t = O) and
Please show work and do not round intermediate calculations
Digital Organics (DO) has the opportunity to invest Sl .19 million now (t = O) and expects atter-tax returns ot $770,000 in t = 1 and $820,000 in t = 2 The project will last tor Mo years only The appropriate cost ot capital is 14% with all- equity financing, the borrowing rate is 10%, and DO will borrow $230,000 against the project. This debt must be repaid in b,vo equal installments ot $115,000 each. Assume debt tax shields have a net value ot S_25 per dollar ot interest paid _ Calculate the projects APV_ (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole number.) Adjusted present value
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