bob Industries is considering the acquisition of another firm in its industry for 100 million. The acquisition is expected to increase bobs free cash flow by 5 million the first year, and this contribution is expected to grow at a rate of 4% every year thereafter. Bob currently maintains a debt to equity ratio of 1 , its corporate tax rate is 21%, its cost of debt is 7%, and its cost of equity is 12%. Bob Industries will maintain a constant debt-equity ratio for the acquisition.

Given new debt is issued 50 million ijitially to fund aquisition. the interest tax sheild of acquisition is closets to ?