Corporation has a total assets of $$200$ million, consisting of $$100$ million in debt and $$100$ million in equity. The management sees a new investment opportunity that requires an initial investment of $$30$ million. The NPV of this project is $$10$ million. The firm plans to announce the project to the public before raising capital and investing. If the company wishes to maintain the same D:V ratio, how much additional loans should it take?

Corporation has a total assets of $$200$ million, consisting of $$100$ million in debt and $$100$ million in equity. The management sees a new investment opportunity that requires an initial investment of $$30$ million. The NPV of this project is $$10$ million. The firm plans to announce the project to the public before raising capital and investing. If the company wishes to maintain the same D:V ratio, how much additional loans should it take?

$$15$ million

$$40$ million

$$5$ million

$$20$ million