The cost of integral rehabilitation is estimated at 30 million in year 30 (at year 30 prices), the first time integral rehabilitation will take place. Integral rehabilitation will take place every 40 years since then. The projection horizon is 15 years. The corporate tax rate is 30%. Assume a risk-free rate of 5% and a yearly inflation rate of 2%. What is the present value at time zero of the perpetuity of periodical integral rehabilitations. Mark the answer that best approaches the right result.

Remember: The second term of the formula given in class corresponding to the correction for the depreciation tax shield accounted for in the gross income perpetuity must be excluded.

CIR 30000000 30 t Data Cost Rehab First Rehab (year) Rehab freq. Horizon Risk free Rate Inflation Rate Corp. Tax Rate - ct 40 15 if 8 TC 5.00% 2.00% 30% CIR 30000000 30 t Data Cost Rehab First Rehab (year) Rehab freq. Horizon Risk free Rate Inflation Rate Corp. Tax Rate - ct 40 15 if 8 TC 5.00% 2.00% 30%