Consider the following data for 2007 from an aftertax cash flow analysis. What is the loan interest payment for 2007 ?

Before - Tax Cash Flow \(=\$ 20,000\)

Loan Principal Payment \(=\$ 4,018\)

Depreciation Deduction \(=\$ 8,920\)

Taxable Income \(=\$ 8,018\)

Taxes Due \(=\$ 2,726\)

After - Tax Cash Flow \(=\$ 10,194\)

a. \(\$ 1,274\)

b. \(\$ 3,062\)

c. \(\$ 7,062\)

d. \(\$ 11,080\)