[Q: 16-7492694] APV: Flotation Costs and Non-Amortized Loans. Bicksler Enterprises is considering a \$5.9 million project that will last 10 years. The project's assets are depreciable and will be depreciated using straight-line depreciation with no salvage value. The project will generate cash revenues of $7.3 million per year and cash costs of $6.0 million per year. The firm's cost of unlevered equity is 18.2% and it faces a tax rate of 22%. The risk-free rate is 7.4\%. If the project were financed solely through equity, its net present value would equal $465093.84. Suppose the firm can obtain a 10 year non-amortizing loan of $5.3 million after flotation costs, at the risk-free rate, to partially finance the project. Assume the flotation costs are 1% of the gross proceeds. What is the APV of the project under this debt scenario? Net Present Value of Loan Part A: Determine the gross proceeds of the loan. Gross proceeds: $. (Round your answer to two decimal places and use the rounded value in Parts B, D and E). Part B: Determine the aftertax interest payments on the non-amortizing loan. Aftertax interest payments: $, (Round your answer to two decimal places and use the rounded value in Part C). Part C: Determine the present value of the aftertax interest payment annuity. Present value of aftertax interest payment annuity: $ (Round your answer to two decimal places and use the rounded value in Part D; Enter your value as a positive number). Part D: What is the net present value of the non-amortizing loan? NPV (loan): $. (Round your answer to two decimal places and use the rounded value in Part H). Part E: Determine the annual flotation cost tax shield. Annual flotation cost tax shield: \$ . (Round your answer to two decimal places and use the rounded value in Part F). Part F: Determine the present value of the annual flotation cost tax shield annuity. Present value of flotation cost tax shield annuity: $ (Round your answer to two decimal places and use the rounded value in Part G). Part G: Determine the net flotation costs. Net flotation costs: \$ (Round your answer to two decimal places and use the rounded value in Part H). Adjusted Present Value Part H: What is the APV of the project under this debt scenario? APV: \$ , (Round your answer to two decimal places)