Problem #$8$: You forecast for ABC Corp. the following unlevered cash flows:

Year $1$: $$1,562$ mil.

Year $2$: $$1,511$ mil.

Year $3$: $$1,426$ mil.

Year $4$: $$1,778$ mil

Year $5$ and on: $1\%$ annual growth

Assume the firm$$s unlevered cost of capital is $9\%$ and its cost of debt is $4\%.$ The corporate tax

rate is $25\%.$ The firm intends to maintain a D$/$V ratio of $25\%$ for the foreseeable future.

$($a$)$ Calculate the enterprise value of the firm using the WACC approach

$($b$)$ What is the total present value of all future tax shields from the firm$$s use of debt?