A firm is raising new equity in order to invest $2.0 million into a new business project that would last 10 years. Annual pre-tax earnings from it will equal $0.4 million, corporate tax is 34%, and the required return on equity is 12%. If instead it raised half of the initial expense through a 10-year interest-only loan at a 3% annual interest, what would be the net present value of the financing side effects?

a. $10,200 b. $40,800

c. $57,632

d. $87,008

e. $230,529