86) Suppose a project financed via an issue of debt requires six annual interest payments of $18 million each year. If the tax rate is 35% and the cost of debt is 8%, what is the value of the interest rate tax shield? A) $58.25 million B) $34.95 million C) $23.30 million D) $29.12 million Use the following information to answer the question(s) below. Number of units produced and sold: 2000000 87) Your estimate of the degree of operating leverage (DOL) is closest to: A) 1.1317 B) 1.3968 C) 1.5637 D) None of the above 88) You estimate of the degree of financial leverage (DFL) is closest to: A) 1.3968 B) 11.317 C) 1.1317 D) None of the above 89) Your estimate of the degree of total leverage (DTL) is closest to: A) 1.1317 B) 2.5285 C) 1.5808 D) None of the above 90) Your estimate of a breakeven point is closest to: A) 734,848 B) 1,117,326 C) 1,215,000 D) None of the above 92) Which of the following is least likely classified as an opportunity cost? A) The cash savings related to adopting a new production process. B) The cash flows generated by an old machine that is to be replaced. C) The market value of vacant land to be used for a distribution center. 00) Regarding corporate governance, which of the following most likely would be a reason for concern when evaluating an independent board member's qualifications? The board member: A) has formerly served on the boards of several successful companies B) has served on the board for 14 years. C) owns 1,000 shares of the corporation's equity. D) None of the above