To finance a project with an estimated NPV of $500 million and a $900 million investment cost, your firm wants to get a loan from an insurance company.  Required interest payments are $50 million per year for 20 years, beginning in exactly 1 year.  Principal repayment due in 20 years is $350 million.  If the  loan is riskless and market interest rate on riskless loans is 3%, what will loan proceeds be?

Answer rating: 100% (QA)

To calculate the loan proceeds we need to find the present value PV of the future cash flows associa... View the full answer