Your company is looking at setting up a manufacturing plant overseas to manufacture driverless flying cars. The company bought some land in that country three years ago for $$2\mathrm{.}7$ million. The land was just appraised for $$3\mathrm{.}8$ million after tax. The proposed project will last three years. It is expected that you can sell the land at the end of $3$ years for $$4$ million. The manufacturing plant will cost $$34$ million to build.

The following market data on your company are current.

Debt: $187,000$ bonds with a coupon rate of $6\mathrm{.}3$ percent outstanding, $25$ years to maturity, selling for $105$ percent of par; the bonds make annual payments.

Common Stock: $8,000,000$ shares outstanding, selling for $$96$ per share; the beta is $1\mathrm{.}58.$ The next dividend payment will be $$12.$ Thereafter, dividends are expected to grow at $5\%$ forever.

Preferred Stock: $400,000$ shares of $8$ percent preferred stock outstanding, selling for $$103$ per share.

Market: $10$ percent expected market risk premium; $3\mathrm{.}1$ percent risk$-$free rate. Tax Rate $30\%.$

The project requires $$5\mathrm{.}7$ million in initial net working capital that you will need to also raise through floatation.

Your manager wants you to use both the CAPM and Dividend Growth methods to calculate the cost of equity and then take the average of the two numbers and use that as the Re in the WACC calculation.

The manufacturing plant uses a $3-$year MACRS schedule for depreciation. At the end of the project $($that is at the end of $3$ years$)$ the plant and equipment can be scrapped for $$1$ million.

The company will incur $$9\mathrm{.}9$ million in annual fixed costs. The plan is to manufacture $120$ driverless flying cars per year and sell them for $$1,300,000$ each; the variable costs are $$950,000$ per unit.

What is the NPV of this project?