Question $8$

Suntec, Inc.$\text{'}$s investment in Franconia will receive a concessionary loan of Euro$12$ million from the German government. The loan bears an interest rate of $7\%$ per year, compared with the market interest rate of $10\%$ per year. Interest is paid annually on the loan outstanding, and the loan principal is paid in the same amount in three years $(4$ million Euros$/$year$).$ What is the present value of the benefit from the concessionary loan?