In September 2008, the IRS changed tax laws to allow banks to utilize the tax loss carrytowards of banks they acquire to Shield up to 100% of their future income from taxes (prior law restricted the ability of acquirers to use these credits). Suppose Fargo Bank acquired Covia Bank and witty acquired 558 billion in tax loss carryforwards. If Fargo Bank was expected to generate taxable income of $8 billion per year in the future and its tax rate was 30%, what was the present value of these acquired tax loss carryforwards given a cost of capital of 8%? How would the present value change under content law which resicts the amount of the deduction to 80% of pre-tax incomo? Ona 11 Fargo Bank was expected to generate taxable incomo of $8 billion per year in the future, and its tax rate was 30% What was the present value of those acquired tax loss carrytowards given a cost of capital of 8%? The present value of these acquired tax loss carryforwards is s billion (Round to wool places)