An Investor Believes That a Certain Property Is Worth $10,000,000

An investor believes that a certain property is worth $10,000,000. The seller refuses to sell it for that amount, but has offered to provide a 5-year interest-only loan for $5,000,000 at 4% interest annual payments at the ends of the years, first payment due in one year) . Market interest rates on such a loan are currently 6.5%. How much should the investor be willing to pay for the property from an investment value perspective taking the loan deal) if the investor faces a 30% marginal income tax rate? Ch15)

A) $10,000,000
B) $10,383,588
C) $10,403,023
D) $10,519,460
E) Insufficient information to answer the question.