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If the firm issued $20 million of debt at the beginning of the project, and if this debt takes the form of a perpetuity (i.e.,
If the firm issued $20 million of debt at the beginning of the project, and if this debt takes the form of a perpetuity (i.e., it remains outstanding forever) with interest costs of 7%, what would be the present value of the "debt tax shield" generated from this project?
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