Suppose that Sudbury Mechanical Drifters is proposing to invest $10.5 million in a new factory. It can depreciate this investment straight-line over 10 years. The tax rate is 40%, and the discount rate is 10% .. What is the present value of Sudbury's depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Straight-Line Schedule Straight-line. 10-year Tax Shields at 40% Te PV (Tax Shields) at 10% Answer is complete and correct. Year Year Year Year Year Year Year 1 2 Year Year Year 3 5 6 7 9 10 Total S 11 S 1.1 $ 115 115 1.1 S 11 $ 1.1 1.1 11 S 115 105 $ 0.4 0.4 $ 0.4 0.43 04 0.4 0.43 0.43 0404042 $ 0.4 0.3 0.3 0.3 0.3 02020202023 20 OOO 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 milions rounded to 1 decimal place.) Answer is not complete. Year Year Total Double decline Schedule Start of Year Book Value Depreciation Tax Shields at 40% To PV (Tax Shields) at 10% Year Year Year Year Year Year Year 2 3 4 5 7 10 S 10.5 S 8.45 0.75 54 435 34 23 22 5 13 14 $ 21 17 13 11030700055 04 03 c. What would be the present value of the tax shield if the government allowed Sudbury to write-off the factory immediately? (Enter your answer in millions rounded to 1 decimal place.) Answer is complete and correct. Percent of depreciation tax shields Net >