Photochronograph Corporation (PC) manufactures time seriesphotographic equipment. It is currently at its target debt-equityratio of .7. It’s considering building a new $70 millionmanufacturing facility. This new plant is expected to generateaftertax cash flows of $7.3 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 6.9 percent of the amount raised. Therequired return on the company’s new equity is 13 percent. 2. A newissue of 20-year bonds: The flotation costs of the new bonds wouldbe 2.4 percent of the proceeds. If the company issues these newbonds at an annual coupon rate of 4 percent, they will sell at par.3. Increased use of accounts payable financing: Because thisfinancing is part of the company’s ongoing daily business, it hasno flotation costs, and the company assigns it a cost that is thesame as the overall firm WACC. Management has a target ratio ofaccounts payable to long-term debt of .10. (Assume there is nodifference between the pretax and aftertax accounts payable cost.)What is the NPV of the new plant? Assume that PC has a 23 percenttax rate. (Do not round intermediate calculations and enter youranswer in dollars, not millions, rounded to the nearest wholedollar amount, e.g., 1,234,567.)