A company must repay the bank $10,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value factor for 3 years at 8% is 0.7938. The present value of the loan is:
a) $10,000.
b) $12,400.
c) $7,938.
d) $9,200.
e) $7,600.