Q35

Cruise Ltd has debt of $1,000,000 with a cost of 5%. The company intends to maintain this level of debt indefinitely. What is the interest tax saving and the Present Value of the interest tax saving assuming a discount rate of 5%.

Question 35 options:

	$15,000 tax saving and PV of $300,000
	$15,000 tax saving and PV of $400,000
	$20,000 tax saving and PV of $300,000
	$20,000 tax saving and PV of $200,000