Retlaw Corporation $(RC)$ manufactures time$-$series photographic equipment. It is

currently at its target debt$-$equity ratio of $0\mathrm{.}83.$ It's considering building a new

$$46$ million manufacturing facility. This new plant is expected to generate after$-$

tax cash flows of $$8\mathrm{.}5$ million in perpetuity. The company raises all equity from

outside financing. There are three financing options:

A new issue of common stock: The flotation costs of the new common stock

would be $8\%$ of the amount raised. The required return on the company's

new equity is $16\%.$

A new issue of $20-$year bonds: The flotation costs of the new bonds would be

$4\%$ of the proceeds. If the company issues these new bonds at an annual

coupon rate of $8\mathrm{.}0\%,$ they will sell at par.

Increased use of accounts payable financing: Because this financing is part of

the company's ongoing daily business, it has no flotation costs, and 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

$0\mathrm{.}140.($Assume there is no difference between the pre$-$tax and after$-$tax

accounts payable cost.$)$

What is the NPV of the new plant? Assume that RC has a $35\%$ tax rate. $($Enter

the answer in dollars. Do not round intermediate calculations. Round the

WACC percentage to $2$ decimal places. Round the final answer to $2$ decimal

places. Omit $ sign in your response.$)$

NPV $