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Triad Corporation has established a joint venture with Tobacco Road Construction, Incorporated, to build a toll road in North Carolina. The initial investment in paving
Triad Corporation has established a joint venture with Tobacco Road Construction, Incorporated, to build a toll road in North Carolina. The initial investment in paving equipment is $ million. The equipment will be fully depreciated using the straightline method over its economic life of five years. Earnings before interest, taxes, and depreciation collected from the toll road are projected to be $ million per annum for years starting from the end of the first year. The corporate tax rate is percent. The required rate of return for the project under allequity financing is percent. The pretax cost of debt for the joint partnership is percent. To encourage investment in the countrys infrastructure, the US government will subsidize the project with a $ million, year loan at an interest rate of percent per year. All principal will be repaid in one balloon payment at the end of Year What is the adjusted present value of this project? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to decimal places, eg
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