A corporate has provided an intercompany loan to one of its subsidiary companies. The loan has a current exposure at default (EAD) of $55,300,000. If the subsidiary suffers liquidity problems and subsequently defaults one year from today, the corporate expects to recover 65% of the EAD from the loan but in doing so will incur costs of 1.3% of the current EAD, due to the recovery process. The risk-free rate is currently 3% The present value of the net amount recovered is closest to: $34,200,000 $35,226,000 $34,507,000 $34,898,000 $35,945,000