Consider a project of the Cornell Haul Moving Company, the timing and size of the incremental after-tax cash flows (for an all-equity firm) are shown below in millions: 0 -990

1 $125

2 $250

3 $375

4 $500

The firm's tax rate is 34 percent; the firm's bonds trade with a yield to maturity of 8 percent; the current and target debt-equity ratio is 2; if the firm were financed entirely with equity, the required return would be 10 percent. Using the APV method, what is the value of the debt side effects?

		$239,072,652.70
		$66,891,713.66
		$59,459,301.03
		$660,000,000