Digital Organics (DO) has the opportunity to invest $1.10 million now (t = 0) and expects after-tax returns of $700,000 in t = 1 and $800,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 12% with all-equity financing, the borrowing rate is 8%, and DO will borrow $400,000 against the project. This debt must be repaid in two equal installments. Assume debt tax shields have a net value of $0.30 per dollar of interest paid. Calculate the project’s APV. (Do not round intermediate calculations. Rounddown your answer to the nearest whole dollar.)

Adjusted present value $