Question: Francis is considering opening a bakery. If she does so, there will be startup costs of $1,890,040, and it will produce a yearly EBIT of

Francis is considering opening a bakery. If she does so, there will be startup costs of $1,890,040, and it will produce a yearly EBIT of $321,155 for 29 years, with the first cash flow one year from when it opens. She will borrow $655,850 for 30 years to help offset startup costs, and her cost of debt will be 5.2%. Her tax rate is 20%, and her levered cost of equity is 10%. What is the NPV to her of opening the bakery? Please use the FTE method, and give your answer to the nearest dollar.

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