Question: Today is January 1 , 2 0 0 9 . The state of Iowa has offered your firm a subsidized loan. It will be in

Today is January 1,2009. The state of Iowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent.
What is the -denominated NPV of this project?

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