SYLVIE CONSTRUCTION COMPANY wins a bid to construct a bridge for the government. The terms of the agreement are as follows: . SYLVIE Co. is to construct the bridge within 2 years and operate the bridge for 6 years following the completion of the construction . In exchange for the services provided by Sylvie, the gov't grants the company the right to collect fees from the bridge users in years 3 to 8. . In addition, the grantor guarantees the operator a minimum of $500,000,000 with an imputed interest rate of 3.95% to reflect the timing of cash receipts. The operator forecasts that collection from customers per year would amount to $200,000,000 per year starting on the third year At the commencement of the construction, Sylvie Construction Company entered into a 5-year bank loan of $400,000,000 with an imputed interest of 10%. Except for the loan, cash flows are assumed to take place at the end of the year