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Minsk Manufacturing Corp. is valuing a new project. The project requires an initial investment of $30 million and will last ten years. The project will

Minsk Manufacturing Corp. is valuing a new project. The project requires an initial investment of $30 million and will last ten years. The project will result in revenues of $10 million and costs of $5 million in each of these ten years. Ignore depreciation and net working capital requirements. Minsk will raise $10 million of debt to finance the project. It will repay $5 million of debt after three years from today and the rest five years from today. The cost of debt is 5%. The cost of capital of other all-equity firms with similar businesses is 10%. The corporate tax rate is 20%. What is the value of the project?

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