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Suppose a project financed via an issue of debt requires six annual interest payments of $18 million each year. If the tax rate is 35%

Suppose a project financed via an issue of debt requires six annual interest payments of $18 million each year. If the tax rate is 35% and the cost of debt is 8%, what is the value of the interest rate tax shield?

$23.30 million

$29.12 million

$34.95 million

$58.25 million

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