Safety Systems needs $2,000,000 to expand their production capacity. They can either borrow the full $2,000,000 from the bank at 7% interest (Plan A), or they can issue 80,000 preferred shares for $25 each (Plan B). The preferred shares would pay an annual dividend of $2.00 per share. Assuming that the company has an effective tax rate 25%, calculate the annual after tax cost (in dollars) of each plan