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A company has decided, as part of its capital budget, to invest $ 2 0 , 0 0 0 , 0 0 0 into the

A company has decided, as part of its capital budget, to invest $20,000,000 into the purchase of a new factory to increase its production capability. They have decided to fund this investment entirely through debt. The cost of debt is 5%. The corporate income tax rate is 30%. What would be the annual tax benefits in this project?

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