Bort Corp. has established a joint venture with Ibis Road Construction Inc. to build a dam in southwestern New Brunswick. The initial investment in equipment is $80.5 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 dam are projected to be $12.6 million per annum for 20 years starting from the end of the first year. The corporate tax rate is 34 percent. The required rate of return for the project under all-equity financing is 13 percent. The pre-tax cost of debt for the joint partnership is 9.0 percent. To encourage investment in the countrys infrastructure, the Canadian government will subsidize the project with a $25.5 million, 15-year loan at an interest rate of 5.5 percent per year. All principal will be repaid in one balloon payment at the end of year 15.

What is the adjusted present value of this project?

a)	$8.9M
b)	$11.0M
c)	$8.2M
d)	$9.5M