Arcos Corporation, a U. S. firm, is trying to fund a project in Mexico. The Mexican government has offered Arcos a loan guarantee that will enable it to borrow MXN 20 million for six years at an...

Arcos Corporation, a U. S. firm, is trying to fund a project in Mexico. The Mexican government has offered Arcos a loan guarantee that will enable it to borrow MXN 20 million for six years at an annual interest cost of 6 percent. Without this guarantee, Arcos would have paid a rate of 9 percent. What is the NPV of the loan guarantee?