An all$-$equity financed company has a cost of capital of $10$ percent. It owns one asset: a mine capable of generating $$97$ million in free cash flow every year for five years, at which time it will be abandoned. A buyout firm proposes to purchase the company for $$320$ million financed with $$270$ million in compound interest debt to be repaid in five, equal, end$-$of$-$year payments and carrying an interest rate of $9\mathrm{.}0$ percent.

Calculate the annual debt$-$service payments required on the debt.

Ignoring taxes, estimate the rate of return to the buyout firm on the acquisition after debt service.