Question: A US company is taking on a project which will generate $15M after-tax CF per year for 10 years. WACC is 10%,thecost of debt is

A US company is taking on a project which will generate $15M after-tax CF per year for 10 years. WACC is 10%,thecost of debt is 5%,and thetax rate is 20%.The project requires an initial investment of$50M in Year 0. You are planning to fund the project with$20m equity and 30M debt(the debt must be repaid in 10 equal installments). The US government is offering to lend you$30M at 3% (the loan must be repaid in 10 equal installments). Compute the NPV of the project.

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