Daniel Kaffe, CFO of Kendrick Enterprises, is evaluating a 10- year, 6.1 percent loan with gross proceeds of $5,100,000. The interest payments on the loan will be made annually. Flotation costs are estimated to be 1.7 percent of gross proceeds and will be amortized using a straight-line schedule over the 10- year life of the loan. The company has a tax rate of 40 percent, and the loan will not increase the risk of financial distress for the company. a Calculate the net present value of the loan excluding flotation costs. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net present value b. Calculate the net present value of the loan including flotation costs. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net present value References eBook&Resources Worksheet Difficulty: 1 Basic Section: 18.6 APV Example