Suppose that Sudbury Mechanical Drifters is proposing to invest $$60\mathrm{.}0$ 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?

What would be the present value of the tax shield if the government allowed Sudbury to write$-$off the factory immediately?