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Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year. If the tax rate is 21%

Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year. If the tax rate is 21% and the cost of debt is 5%, what is the value of the interest rate tax shield?

		$42.64 million
		$25.58 million
		$17.05 million
		$21.32 million

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