Compute the annual interest tax shield based on the debt outstanding, tax rate, and cost of debt capital, ALL of which are given in the case. Then find the present value of this finite series of annual Tax Shields.

- Debt Outstanding: $46,000

- Tax Rate: 48% of Pre-Tax Profit

- Cost of Capital: 12.098% (Value Calculated assuming: beta=1.856 , Mkt. Risk Prem.=8% , Risk-Free Rate=3.213%) (This is also equal to the cost of equity because there is no debt used)

- Discount Rate (Given) = 14% - (not necessarily relevant - added for the sake of comparison if someone wanted to calculate the tax shield with this value vs. the calculated value of 12.098%