Assume a bank is in the process of restructuring a $4 million loan. The net recovery is $3, 990, 000. The terms of the restructuring terms are as follows: Loan payments will be stretched to 5 years. Interest rate will be reduced to 10% for the next 5 years. Principal payment of $1,000, 000 in year 3 and principal payments of $1,500, 000 in years 4 to 5. No upfront fee. The cost of funds for the bank increases to 12% since the risk of the loan increases after restructuring. a. Is the present value of the new loan greater than the present value of the old loan? b. What up-front fee will equate the present of the old and new loans