A firm is considering a project that will last five years and will generate an annual cash flow of $9 million. Th e project requires an initial investment of $28 million. Assume that the cost of equity for the project is 20 percent, if the project is 100 percent equity financed. Th e fi rm can obtain a loan for $22.5 million to start the project, at a rate of 10 percent ($2.25 million in interest paid each year, with principal paid in a lump sum at the end of the loan). However, the lender will only extend the loan for three years. Th e firm’s tax rate is 30 percent. Calculate the APV of the project. Is this investment worthwhile for the firm?