Cruise Ltd has debt of $1,000,000 with a cost of 5%. The company intends to maintain this level of debt indefinitely. What is the interest tax saving and the Present Value of the interest tax saving assuming a discount rate of 5%.

a- $20,000 tax saving and PV of $200,000

b- $15,000 tax saving and PV of $300,000

c- $20,000 tax saving and PV of $300,000

d- $15,000 tax saving and PV of $400,000