Problem $18-22$ APV and issue costs The Bunsen Chemical Company is currently at its target debt ratio of $\backslash (40\backslash \%\backslash ).$ It is contemplating a $\backslash (\backslash$$ $1\backslash )$ million expansion of its existing business. This expansion is expected to produce a cash inflow of $\backslash (\backslash$$ $130,000\backslash )$ a year in perpetuity. The company is uncertain whether to undertake this expansion and how to finance it$.$ The two options are a $\backslash (\backslash$$ $1\backslash )$ million issue of common stock or a $\backslash (\backslash$$ $1\backslash )$ million issue of $20-$year debt. The flotation costs of a stock issue would be around $\backslash (5\backslash \%\backslash )$ of the amount raised, and the flotation costs of a debt issue would be around $\backslash (11/2\backslash \%\backslash ).$ Bunsen's financial manager, Polly Ethylene, estimates that the required return on the company's equity is $\backslash (14\backslash \%\backslash ),$ but she argues that the flotation costs increase the cost of new equity to $\backslash (19\backslash \%\backslash ).$ On this basis, the project does not appear viable. On the other hand, she points out that the company can raise new debt on a $\backslash (7\backslash \%\backslash )$ yield, which would make the cost of new debt $\backslash (81/2\backslash \%\backslash ).$ She therefore recommends that Bunsen should go ahead with the project and finance it with an issue of long$-$term debt. Calculate the NPV based on the lowest issue cost for external financing at this time. Ignore any future issue cost implications. Assume a corporate tax rate of $\backslash (21\backslash \%\backslash )$ Note: Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole number. Answer is complete but not entirely correct.