The financial manager of Fox Co. is evaluating a nine-year, 8 percent loan with gross proceeds of R17.99 million. The interest payment on the loan will be made annually over the life of the loan and the principal amount of the loan will be repaid in full at the end of the life of the loan. Flotation costs are estimated to be 7.5% of the gross proceeds and will be amortized using a straight-line schedule over the nine- year life of the loan. The corporate tax rate is 30%. The loan will not affect the risk of the company. Calculate the NPV of the loan (excluding flotation costs).

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