Pumpkin Patch Corp. $($PPC$)$ is an all$-$equity firm with EBIT of $$225,000$ and an unlevered cost of capital of $16\%.$ Management at PPC decides to add permanent debt with a market value of $$850,000$ to the capital structure. The cost of debt is $8\%$ and the tax rate is $34\%.$ What is the new value of the levered firm? $($hint ans is

$$1,217,125)$