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Suppose a project financed via an issue of debt requires five annual interest payments of$10 million each year. If the tax rate is30% and the

Suppose a project financed via an issue of debt requires five annual interest payments of$10 million each year. If the tax rate is30% and the cost of debt is6%, what is the value of the interest rate taxshield?

$13.20 million

$11.35 million

$12.21 million

$12.64 million

$15 million

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