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Assume that the corporate tax rate is 34%. If a firm borrows $5,000,000 at an annual interest rate of 7%, what is the present value

Assume that the corporate tax rate is 34%. If a firm borrows $5,000,000 at an annual interest rate of 7%, what is the present value of all future tax savings if the firm will never pay the principal amount?

Group of answer choices

$119,000

$1,700,000

$5,000,000

$350,000

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