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What will loan proceeds be

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To finance a project with an estimated NPV of $500 million and a $900 million investment cost, your firm wants to get a loan from an insurance company. Required interest payments are $50 million per year for 20 years, beginning in exactly 1 year. Principal repayment due in 20 years is $350 million. If the loan is riskless and market interest rate on riskless loans is 3%, what will loan proceeds be?

Reference no: EM133119247

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