ABC Industries is given the opportunity to raise $5 million in debt for four years through a local government subsidized program. While Villafane industries would normally be required to pay 12% on its debt issues, the Canton County program sets the rate at 9%. The corporate tax rate is 34%. What is the NPV of this subsidized loan (including the interest tax shield)?

Note guide: NPV of Loan= Loan amount - PV of all loan payments including principal repayment + PVITS; where all CF are discounted at the market rate for the loan of 12%.