Consider a project to produce solar water heaters. It requires a $10 million investment and offers a level after-tax cash flow of $1.62 million per year for 10 years. The opportunity cost of capital is 10.25%, which reflects the project’s business risk.
If the firm incurs issue costs of $450,000 to raise the $4 million of required equity, what will be the APV? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole number.)
Adjusted present value $