Question: please explain all steps and explain with financial calctulor if possible. Daniel Kaffe, CFO of Kendrick Enterprises, is evaluating a 10-year, 6.9 percent loan with

please explain all steps and explain with financial calctulor if possible.

Daniel Kaffe, CFO of Kendrick Enterprises, is evaluating a 10-year, 6.9 percent loan with gross proceeds of $5,100,000. The interest payments on the loan will be made annually. Flotation costs are estimated to be 3 percent of gross proceeds and will be amortized using a straight-line schedule over the 10-year life of the loan. The company has a tax rate of 35 percent, and the loan will not increase the risk of financial distress for the company.

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