Photochronograph Corporation (PC) manufactures time seriesphotographic equipment. It is currently at its target debt-equityratio of .65. It’s considering building a new $74 millionmanufacturing facility. This new plant is expected to generateaftertax cash flows of $8.9 million in perpetuity. The companyraises all equity from outside financing. There are three financingoptions:

1.	A new issue of common stock: The flotation costs of thenew common stock would be 6.5 percent of the amount raised. Therequired return on the company’s new equity is 14 percent.
2.	A new issue of 20-year bonds: The flotation costs ofthe new bonds would be 2.8 percent of the proceeds. If the companyissues these new bonds at an annual coupon rate of 7 percent, theywill sell at par.
3.	Increased use of accounts payable financing: Becausethis financing is part of the company’s ongoing daily business, ithas no flotation costs, and the company assigns it a cost that isthe same as the overall firm WACC. Management has a target ratio ofaccounts payable to long-term debt of .15. (Assume there is nodifference between the pretax and aftertax accounts payablecost.)

What is the NPV of the new plant? Assume that PC has a 22percent tax rate. (Do not round intermediate calculationsand enter your answer in dollars, not millions, rounded to thenearest whole dollar amount, e.g., 1,234,567.)