Question 18 4 pts A local government just offered a firm an 8-year subsidized loan with gross proceeds of $8 million. According to the terms of the loan agreement, the firm must pay interest annually at a subsidized rate of 5%. The principal, on the other hand, will be returned via a single balloon payment at the end of the loan period. The firm is responsible for covering all flotation costs, which are estimated to be 1% of the gross proceeds and will be amortized using a straight-line schedule over the 8-year life of the loan. The firm's next best option for debt financing is a bank loan with a 9% interest rate. If the corporate tax rate is 21%, then what is the NPV of the loan (including flotation costs)? $2,167,690.04 O $5,734,072.60 $2,247,690.04 $768,487.77 $1,876,267.28