BE is considering a $10 million project that will last five years, implying straight-line depreciation per year of $2 million. The cash revenues less cash expenses per year are $3,500,000. The corporate tax bracket is 30 percent. The cost of unlevered equity is 20 percent. Please value the project by APV method under two case below. (1) Case I: BE can obtain a five-year, nonamortizing loan for $7,500,000 after flotation costs at the risk-free rate of 10 percent. Flotation costs are fees paid when stock or debt is issued. BE is informed that flotation costs will be 1 percent of the gross proceeds of its loan. (2) Case II: BE can obtain a five-year, subsidized loan for $7,500,000.