You are evaluating a machine that costs $60,000 and will be depreciated straight-line over 6 years. The salvage value is $6,000 at year 6. The machine will generate $18,000 before-tax cash flow per year. The required rate of return is 12% if all equity financed. The corporate tax rate is 40%. You plan to issue 70% equity and 30% debt to pay for the machine and the flotation costs. The flotation costs are 8% and 5% respectively for equity and debt issuances. Your usual borrowing cost is 8%. Loyal Bank offers you a special debt at 5% but requires 6 equal annual payments (include interest and repayment of loan). Calculate the net present value. Provide your rationale and any supporting data.