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Consider a project to produce mind - controlled drones. This project requires a $ 7 0 million investment immediately and offers a pre - tax

Consider a project to produce mind-controlled drones. This project requires a $70 million investment immediately and offers a pre-tax cash flow of $20 million at the end of the first year. After that, it will grow at 3% annually for the next 7 years, for a total of 8 years. The unlevered cost of capital is 9%.
Suppose that the project is financed with $56 million of debt and $14 million of equity. The plan is to pay down ALL of the debt in equal annual installments over the project's 8 year life. The interest rate paid on the debt is 8% and the marginal corporate tax rate is 35%. Calculate the value of this project. What is the project's net present value (NPV)?
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