OneUSF, a U.S. MNC based in Florida, plans to build a wholly owned manufacturing facility in Italy. The cost of constructing the manufacturing plant is estimated at 3,000,000. The Italian government will allow the plant to be depreciated straight-line over a 3-year period. The normal borrowing rate for OneUSF is 8 percent in dollars and 7 percent in euros. In dollar terms, OneUSF uses 12 percent all-equity cost of capital. Current exchange rate is $1.14/1.00. The long- run U.S. inflation rate per annum is 2.8 percent. The long-run Eurozone inflation rate per annum is 2.1 percent. The marginal corporate tax rate in Italy and the U.S. is 35%. What is the present value of the depreciation tax shield? (Please keep 2 digits in decimals to get the right answer) $974,510 $1,065,058 None of the above is within $10,000 of the correct answer $1,010,684 $1,045,839