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Suppose that Viking Industry is proposing to invest $25 million in a new factory. It can depreciate this investment straight-line over 10 years. The tax

Suppose that Viking Industry is proposing to invest $25 million in a new factory. It can depreciate this investment straight-line over 10 years. The tax rate is 21%, and the discount rate is 12%. What is the present value of Viking Industry's depreciation tax shields? $2.50 million $2.97 million

$3.23 million $3.55 million

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