In September2008, the IRS changed tax laws to allow banks to utilize the tax loss carryforwards of banks they acquire to shield up to100% of their future income from taxes(prior law restricted the ability of acquirers to use thesecredits). Suppose Fargo Bank acquired Covia Bank and with it acquired $ 58 billion in tax loss carryforwards. If Fargo Bank was expected to generate taxable income of $8 billion per year in thefuture, 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 current law which restricts the amount of the deduction to 80% ofpre-tax income?