A firm agrees to accept annual payments on a $1,000,000 loan with a fixed interest rate of 8% in exchange for making the annual payments on a loan with floating rate payments based on LIBOR. Payments are interest only with principal due in 10 years. If LIBOR falls to 7%, the firm's net cash flow will be:
a. $70,000.
b. ($10,000).
c. $10,000.