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Digital Organics (DO) has the opportunity to invest $1.13million now (t = 0) and expects after-tax returns of$710,000 in t = 1 and $810,000 in t = 2. Theproject will last for two years only. The appropriate cost ofcapital is 13% with all-equity financing, the borrowing rate is 9%,and DO will borrow $290,000 against the project. This debt must berepaid in two equal installments of $145,000 each. Assume debt taxshields have a net value of $.40 per dollar of interest paid.Calculate the project’s APV. (Enter your answer indollars, not millions of dollars. Do not round intermediatecalculations. Round your answer to the nearest wholenumber.)Adjusted present value $
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