. The ACE company obtains $20 M in order to construct a project by borrowing five equal beginning of year amounts. The project is then operated for twenty years. At the end of the first year of operation, the project is credited with $3 M of net income. And the annual net income is expected to increase by $100,000 per year for each year of operation. Estimate the present value of the cash flows with the effect of interest over the twenty five years of construction and operation. Use 7 percent interest rate for all calculations.