Wilma is considering opening a widget factory. The unlevered cost of equity for making widgets is 0.13. This factory would cost $11 million to set up, and would produce EBIT of $3 million per year for the foreseeable future. She is thinking of applying for a $7 million subsidized perpetual loan to finance this project. Complying with the auditing requirements of thisloan would have a present value of$2 million. This loan would have a rate of 0.05, while the rate she could get from the bank is 0.07.Her tax rate is 0.38. What is the NPV of this project, using the APV method?