$29.46 million

Bore Industries is considering investing $55 million into a new project. The projected free cash flows from the project are shown in the table below. In order to finance the project, Bore will issue a 5-year bond with a face value of $60 million that will be repaid in one bullet payment at the end of five years (as shown in the table below). The cost of debt on the bond is 3.5%, Bore's unlevered cost of capital is 12%, and its marginal corporate tax rate is 25%. Using the APV method, what is the NPV of the project? (Select one) Free Cash Flows for New Project (in $ million) Year FCF (in $ millions) Debt Level (in $ millions) 1 2 3 4 (55.00) 15.00 30.00 50.00 10.00 5 5.00 60 60 60 60 60 o o O o $29.46 million $27.09 million $82.1 million $87 million