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a. What is the present value of Sudbury's depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Year Straight-line Schedule Straight-line,

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a. What is the present value of Sudbury's depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Year Straight-line Schedule Straight-line, 10-year Tax Shields at 40% Tc PV (Tax Shields) at 12% Answer is complete and correct. Year Year Year Year Year Year Year Year Year 1 2. 3 4 5 Total 6 7 8 9 10 $ 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 S 11 S 1.1$ 112 $ 0.4$ 0.4$ 0.4 0.4 0.4 0.43 0.4$ 0.4$ 04$ 0.4 S 4.5 $ 0.4 0.4$ 03$ 0.3 0.3 $ 02$ 0.2$ 0.23 0.2 0.1$ 2.5 b. Suppose that the government allows companies to use double-declining balance depreciation with the option to switch at any point to straight-line. Now what is the present value of the depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Double decline Schedule Answer is not complete. Year Year Year Year Year Year 3 4 5 6 7 8 $ 0.9 $0.9 $ 0.9 $ 0.9 $ 0.9 Total Year Year 1 2 S 11.2$ 9.0 $ 22 $ 0.9 Year Year 9 10 $ 20 $ 2.0 Start of Year Book Value Depreciation Tax Shields at 40% Te PV (Tax Shields) at 12%

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