Suppose that Sudbury Mechanical Drifters is proposing to invest $$11\mathrm{.}4$ million in a

new factory. It can depreciate this investment straight$-$line over $10$ years. The tax rate

is $35\%,$ and the discount rate is $10\%.$

a$.$ What is the present value of Sudbury's depreciation tax shields? $($Enter your

answers in millions rounded to $1$ decimal place.$)$

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 millions

rounded to $1$ decimal place.$)$