A local government just offered a firm a 10-year subsidized loan with gross proceeds of $6 million. According to the terms of the loan agreement, the firm must pay interest annually at a subsidized rate of 5%. The principal, on the other hand, will be returned via a single balloon payment at the end of the loan period. The firm is responsible for covering all flotation costs, which are estimated to be 1% of the gross proceeds and will be amortized using a straight-line schedule over the 10-year life of the loan. The firm's next best option for debt financing is a bank Ioan with a 9% interest rate. If the corporate tax rate is 22%, then what is the NPV of the loan (including flotation costs)? $1,608,841.88 $710,889.04 $1,972,274.56 $4,967,267.06 $1,912,274.56