1. A firm currently has $250 million in debt outstanding with a 7.50% interest rate. The terms of the loan require the firm to repay $50 million of the balance each year (until the debt becomes zero). Suppose that the corporate tax rate is 21% and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields, in $ million, from this debt? (Hint: consider how the debt amount changes over time)

		$10.02
		$11.28
		$12.54
		$13.80
		$15.06