GoodLeap makes a deal with some investment bankers to sell their solar panels to institutions. For doing so, the investment bankers will receive a fee.

The solar bond will be a package of 100 solar mortgages.

Each solar mortgage in the package will have monthly payments, a principal of 20,000, a tenor of 10 years, and an APR of 4.80%. The first payment from each solar mortgage will be one month from now.

The solar-bond cash flows will be the sum of all the packaged solar mortgage cash flows.

Institutional investors will value (and pay for) the solar-bond cash flows using an annualized discount rate of 3.0%. This is an effective annual rate. Why the relatively low discount rate? Because of the principal of diversification; the risk in a package of 100 mortgages is less than the risk in each mortgage in the package.

The investment bankers will earn a fee of 2% of the total principal inherent in each solar bond. If GoodLeap originates 100 of these solar mortgages and then securitizes them in this manner, what is the NPV?