b. Suppose that the government allows companies to use double-declining-balance depreciation with the option to switch at any point to straightline. Now what is the present value of the depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Year Double decline Schedule Start of Year Book Value Depreciation Tax Shields at 40% TC PV (Tax Shields) at 12% Answer is complete but not entirely correct. Year Year Year Year Year Year Year Year Year 1 2 3 Total 4 5 6 7 9 8 10 $ 10.9 $ 8.7$ 7,0 $ 5.6$ 45 $ 3.6 $ 2.9 $ 2.3 $ 1.8 * $ 1.5 $ 48.61 $ 2.2 $ 1.7$ 1.4$ 1.1$ 0.9$ 0.7$ 0.6 $ 0.5 $ 0.4% $ 0.3 $ 9.71 $ 0.9 0.7 0.6$ 0.4$ 04$ 0.3 $ 0.2 $ 0.2$ 0.1 $ 0.1% $ 3.91 $ 0.8 $ 0.6 $ 0.4 S 0.3 $ 0.2$ 0.18 0.1$ 0.19 0.1$ 0.0 $ 2.61 olololo Suppose that Sudbury Mechanical Drifters is proposing to invest $10.9 million in a new factory. It can depreciate this investment straight-line over 10 years. The tax rate is 40%, and the discount rate is 12% a. What is the present value of Sudbury's depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) 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 Year Total 1 2 3 4 5 7 8 9 10 $ 1.1$ 1.1$ 1.1$ 1.1 $ 1.1 $ 11 $ 1.1 1.1 1.1 $ 1.13 10.9 $ 0.4$ 0.4$ 0.4$ 0.4$ 0.4$ 0.4 $ 0.4 $ 0.4 $ 0.4$ 0.4 S 44 0.4 $ 0.3 $ 0.3 $ 0.3 $ 02 $ 0.2 $ 0.2$ 0.2 $ 0.2 $ 0.1 $ 2.5