A Small Business Is Receiving a Five-Year $1,000,000 Loan at a Subsidized

A small business is receiving a five-year $1,000,000 loan at a subsidized rate of 3% per year. The firm will pay 3% annual interest payment each year and the principal at the end of five years. If market interest rate on similar loans is 6% per year, what is the NPV of the loan? (Ignore taxes.)

A) +$127,371
B) +$348,369
C) -$501,595
D) None of the above