**Please NO Excel**

- Bicksler Enterprises is considering a $10 M project that will last 5 years, with a straight line depreciation of $2 M per year. The cash revenues less cash expenses per year are $3.5 M. Tax rate is 34%. The risk free rate is 10%, and the cost of unlevered equity is 20%.

- Bicksler can obtain a 5-year, nonamortizing loan for $7.5 M after flotation cost at 10% borrowing rate. Flotation cost will be 1% of gross proceeds of the loan.

- What is the APV of Bicksler?

- Hint, the financing effects include both tax shield and flotation cost.