Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $$1\mathrm{.}70$

million at the end of the first year, and these savings will grow at a rate of $3$ percent per

year indefinitely. The firm has a target debt$-$equity ratio of $0\mathrm{.}85,$ a cost of equity of $11\mathrm{.}0$

percent, and an aftertax cost of debt of $3\mathrm{.}8$ percent. The cost$-$saving proposal is

somewhat riskier than the usual project the firm undertakes; management uses the

subjective approach and applies an adjustment factor of $2$ percent to the cost of capital

for such risky projects.

What is the maximum initial cost the company would be willing to pay for the project?

$($Enter your answer in dollars, not millions of dollars, i$.$e$.1,234,567.$ Do not round

intermediate calculations and round your final answer to the nearest whole dollar

amount.$)$