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Kelly Industries is given the opportunity to raise $5 million in debt for four years through a local government subsidized program. While Kelly would normally

Kelly Industries is given the opportunity to raise $5 million in debt for four years through a local government subsidized program. While Kelly would normally be required to pay 12 percent on its debt issues, the Hampton County program sets the rate at 9 percent. What is the NPV of this subsidized loan? Ignore taxes.

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