Danika Kaffe, CFO of Kendrick Enterprises, is evaluating a $10-$year, $8$ percent loan with gross proceeds of $$5,370,000.$ The interest

payments on the loan will be made annually. Flotation costs are estimated to be $1\mathrm{.}35$ 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 NPV of the loan excluding flotation costs. $($Do not round intermediate calculations. Round the final answer to $2$

decimal places. Omit $ sign in your response.$)$

NPV Loan $

b$.$ Calculate the NPV of the loan including flotation costs. $($Do not round intermediate calculations. Round the final answer to $2$

decimal places. Omit $ sign in your response.$)$

NPV Loan $