Your in the road-building business instead. You have established a joint venture with ABS Construction, Inc., to build another toll road in northern Virginia. The initial investment in paving equipment is $95 million. The equipment will be fully depreciated using the straight-line method over its economic life of five years. EBIT collected from the toll road are projected to be $15 million per year for 20 years starting from the end of the first year. The corporate tax rate is 21 percent. The required rate of return for the project under all-equity financing is 14.52%. The pretax cost of debt for the joint partnership is 9.75%. To help finance the project, $30 million in bonds will be issued. The bonds will be issued at par and will pay a coupon of 7.2%. The bonds will have a time to maturity of 15-years, and all principal will be repaid at the end of Year 15.

What is the adjusted present value (APV) of this project? Show calculations