A business signed a sales contract that the business will receive $$2M6$ months from now. The business has a cash outflow $8$ months from now. The business can invest in shortterm investment with a $5\mathrm{.}4\%$ APR today. As the equity market faced selling pressure recently, the wealth effect would reduce spending in the recent future. The manager believes the interest rate would reduce in $6$ months from now. The current implied interest rate is $5\mathrm{.}4\%$ for interest rate future. Assume the implied interest rate becomes $4\mathrm{.}9\%$ at the end of $6$ months.

Should the business take a long or short position in interest rate future? How much is the outcome from hedging the drop of interest rate? $(15$ points$)$