A company has established a joint venture with another company to build a toll road. The initial investment is paving eq

[answerhappygod]

A company has established a joint venture with another company
to build a toll road. The initial investment is paving equipment is
33 million. the equipment will be fully depreciated using the
straight-line method over its economic life of five years. Earnings
before interest, taxes and depreciation collected from the toll
road are projected to be 3 million per annum for 23 years starting
from the end of the first year. The corporate tax rate is 15%. The
required rate of return for the project under all-equity financing
is 15%. The pretax cost of debt for the joint partnership is 7%. To
encourage investment in the country’s infrastructure, the
government will subsidize the project with an 14 million, 12-year
loan at an interest rate of 4% per year. All principal will be
repaid in one balloon payment at the end of year 12. what is the
NPV of the project (keep two decimal places)?