Gordon is about to start a project requiring GHC6 million of initial investment. The company normally borrows at 12% but a government loan will be available to finance the entire project at 10%. The risk-free rate of interest is 6%. Tax is payable at 30% one year in arrears. The project is scheduled to last for four years. 

 Calculate the effect on the APV calculation if Gordon finances the project by means of the government loan.

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