17.15 Brenda Lynch, CFO of Hunter Enterprises, is evaluating a 10-year, 9-percent loan. The projected net proceeds after flotation costs to be raised by the loan are $4,250,000. The flotation costs are estimated to be 1.25 percent of the gross proceeds and will be amortized using a straight-line schedule over the life of the loan. The cost of similar debt is 9.4 percent. The applicable corporate tax is 40 percent. Suppose that the loan will not increase the financial distress cost of the firm. What is the net present value of this loan?