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Part 1

Braxton Enterprises currently has debt outstanding of

$45

million and an interest rate of

10%.

Braxton plans to reduce its debt by repaying

$9

million in principal at the end of each year for the next five years. If Braxton's marginal corporate tax rate is

30%,

what is the interest tax shield from Braxton's debt in each of the next five years?

The interest tax shield in year one is

$enter your response here

million. (Round to three decimal places.)