A film production company is seeking financing for a movie that it plans to shoot. Invesco lends up to 90% on film tax credits. The movie production budget is $10 million, and the refundable film tax credits are 30% of total production costs. It is expected that film tax credits will take 1 year to receive. Given that such productions have no cash flows, Invico charges its 15% interest in advance and adds it to the loan amount on an interest-bearing basis. Assume that there are no other fees or transaction costs. please use Excel to solve the questions below:

1. What is the maximum loan amount supported by the security?

2. Given that the film generates no revenue until it is completed, Invico capitalizes its interest and adds it to the net amount funded on an interest-bearing basis. What is the amount that would be funded in this scenario?