Luther Industries is considering borrowing $500 million to fund a new product line. Given investors' uncertainty regarding its prospects, Luther will pay a 7% interest rate on this loan. The firm's management knows that the actual risk of the loan is extremely low and that the appropriate rate on the loan is 5%. Suppose the loan is for four years, with all principal being repaid in the fourth year. If Luther's marginal corporate tax rate is 35%, then the net effect of the loan on the value of the new product line is closest to:

A) $22 million

B) $34 million

C) $35 million

D) $23 million