Calculate the apv of the project

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An all-equity firm is considering a $2 million project. The project is expected to generate earnings before taxes of $415,000 per year for ten years. To fully finance the project, the firm can obtain a twelve-year, non-amortized loan with an annual interest rate of 9.4 percent. The firm's cost of unlevered equity is 11.4 percent and it faces a tax rate of 20 percent. Using the adjusted present value approach, calculate the APV of the project.

Enter the answer rounded to two decimal places (Include a negative sign if appropriate).

Reference no: EM133121002

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