Phaser Corp. has a weighted average cost of capital of 10%. It is considering building a vaccine manufacturing facility near Windsor. The facility would cost $10 million and generate after-tax cash flows of $2 million per year for 7 years. The local government is willing to provide a $3 million, 5 year loan with an after tax interest rate of 5%. Interest on the loan would be paid annually at the end of each year and the face value of the loan would be due at the maturity date of the loan. The after tax cost of debt for Phaser would be 7% without the government loan. a) What is the NPV of building the plant without the loan offer? b) What is the NPV of building the plant if it accepts the loan offer? c) What should Phaser do?