If a firm borrows $100 million for five years at an annual interest rate of 7% (cost of debt and coupon rate), what is the present value of interest tax shields? Assume the firm pays interest at the end of each of the next five years and the interest tax shields fall into the same risk class as the firms debt. The corporate tax rate is 30%.

$2.1 million

$30 million

$8.6 million

$70 million