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Firm EleMob will generate a before tax revenue of f4.1M next year. In one year EleMob will also pay 0.7M in interest for outstanding bonds,

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Firm EleMob will generate a before tax revenue of f4.1M next year. In one year EleMob will also pay 0.7M in interest for outstanding bonds, and 0.8M in taxes. The appropriate cost of capital for this firmn is 50% per 5 years. What is the present value of EleMob's tax shield? Firm EleMob will generate a before tax revenue of f4.1M next year. In one year EleMob will also pay 0.7M in interest for outstanding bonds, and 0.8M in taxes. The appropriate cost of capital for this firmn is 50% per 5 years. What is the present value of EleMob's tax shield

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