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suppose a project financed via an issue of debt has an interest expense of $12 million each year for five years. If the tax rate

suppose a project financed via an issue of debt has an interest expense of $12 million each year for five years. If the tax rate is 35% and the cost of debt is 5%. what is the value of the interest tax shield in year one?
A. $.21 million
B. $4.20 million
C. $7.43 million
D. $1 million

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