Space Corp Inc. currently has a debt-to-value ratio of 10%. The firm generates unlevered after-tax cash flows of $100,000 per year in perpetuity. The firms cost of debt is 10% and its cost of equity is 21%. The corporate tax rate is 34%. Now in order to take advantage of the debt tax shields, managers decide to lever the firm up so that the debt-to-value ratio is 40%. At this ratio, the firm is still able to borrow the debt at 10%. How much additional firm value do managers create by levering the firm up? Solve both the APV and WACC methods.