Ret 7 a. What is the present value of Sudbury's depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Answer is complete and correct. 0.66 points Straight-line Schedule Straight-line, 10-year Tax Shields at 35% Tc PV (Tax Shields) at 10% Year Year Year Year Year Year Year Year Year Year 1 2 3 4 5 Total 5 6 7 8 9 10 $ 1.2 $ 1.2 $ 1.2 $ 1.2 $ 1.2$ 1.2 $ 1.2 $ 1.2 $ 1.2 $ 1.2 $ 12.0 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 4.2 $ 0.4 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 2.6 b. Suppose that the government allows companies to use double-declining balance depreciation with the option to switch at any point to straight-line. Now what is the present value of the depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. Double decline Schedule Start of Year Book Value Depreciation Tax Shields at 35% Tc PV (Tax Shields) at 10% Year Year Year Year Year Year Year Year Year Year Total 1 2 3 4 5 6 6 7 8 9 9 10 $ 12.0$ 9.6$ 7.7$ 6.1 $ 4.9 $ 3.9 $ 3.1 $ 2.4 $ 1.6$ 0.8 $ 52.1 % $ 2.4 $ $ 1.9 1.9 $ 1.5 $ 1.2$ 1.0 $ 0.8 $ 0.8 $ 0.8 $ 0.8 $ 0.8 $ 12.0 $ 0.8 $ 0.7 $ 0.5 $ 0.4 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3 0.3 $ 4.2 $ 0.8 $ 0.6 $ 0.4 $ 0.3 $ 0.2 $ 0.2 $ 0.1$ $ 0.1 0.1 $ 0.1 $ 0.1$ 2.9 Ret 7 a. What is the present value of Sudbury's depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Answer is complete and correct. 0.66 points Straight-line Schedule Straight-line, 10-year Tax Shields at 35% Tc PV (Tax Shields) at 10% Year Year Year Year Year Year Year Year Year Year 1 2 3 4 5 Total 5 6 7 8 9 10 $ 1.2 $ 1.2 $ 1.2 $ 1.2 $ 1.2$ 1.2 $ 1.2 $ 1.2 $ 1.2 $ 1.2 $ 12.0 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 4.2 $ 0.4 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 2.6 b. Suppose that the government allows companies to use double-declining balance depreciation with the option to switch at any point to straight-line. Now what is the present value of the depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. Double decline Schedule Start of Year Book Value Depreciation Tax Shields at 35% Tc PV (Tax Shields) at 10% Year Year Year Year Year Year Year Year Year Year Total 1 2 3 4 5 6 6 7 8 9 9 10 $ 12.0$ 9.6$ 7.7$ 6.1 $ 4.9 $ 3.9 $ 3.1 $ 2.4 $ 1.6$ 0.8 $ 52.1 % $ 2.4 $ $ 1.9 1.9 $ 1.5 $ 1.2$ 1.0 $ 0.8 $ 0.8 $ 0.8 $ 0.8 $ 0.8 $ 12.0 $ 0.8 $ 0.7 $ 0.5 $ 0.4 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3 0.3 $ 4.2 $ 0.8 $ 0.6 $ 0.4 $ 0.3 $ 0.2 $ 0.2 $ 0.1$ $ 0.1 0.1 $ 0.1 $ 0.1$ 2.9