Retlaw Corporation $($RC$)$ manufactures time$-$series photographic equipment. It is currently at its target debt$$equity ratio of $0\mathrm{.}73.$ It$$s considering building a new $$56$ million manufacturing facility. This new plant is expected to generate after$-$tax cash flows of $$9\mathrm{.}2$ 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 $10\%$ 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.$)$

Retlaw Corporation $(RC)$ manufactures time$-$series photographic equipment. It is currently at its target debt$-$equity

ratio of $0\mathrm{.}73.$ It's considering building a new $$56$ million manufacturing facility. This new plant is expected to generate

after$-$tax cash flows of $$9\mathrm{.}2$ 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 $10\%$ 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 $30\%$ 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.$)$What is the NPV of the new plant? Assume that RC has a $30\%$ 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.$)$