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Options: a. 18.18 Million b. 14.55 Million c. 36.37 Million d. 21.82 Million Please give an explaination. Thanks! Suppose a project financed via a new

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Options:

a. 18.18 Million

b. 14.55 Million

c. 36.37 Million

d. 21.82 Million

Please give an explaination. Thanks!

Suppose a project financed via a new issue of debt that requires five annual interest payments of $12 million each year. If the tax rate is 35% and the cost of debt is 5%, what is the present value of the new interest rate tax shield

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