Question: Please SHow work. this is the answer I got but it was wrong. Problem 19-16 APV Digital Organics (DO) has the opportunity to invest Sl

Problem 19-16 APV Digital Organics (DO) has the opportunity to invest Sl

Please SHow work. this is the answer I got but it was wrong.

Problem 19-16 APV Digital Organics (DO) has the opportunity to invest Sl _ lg million now (t = O) and expects atter-tax returns ot $770,000 in t = 1 and $820,000 in t = 2. The project will last tor Mo years only The appropriate cost ot capital IS 14% with all-equity financing, the borrowing rate IS 10%, and DO will borrow $230,000 against the project. This debt must be repaid in n,vo equal installments ot $115,000 each. Assume debt tax shields nave a net value of S_25 per dollar of interest paid. Calculate the projects APV_ (Enter your answer in dollars, not millions ot dollars. Do not round intermediate calculations. Round your answer to the nearest whole number.) Adjusted present value

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