Your firm currently has $ $100$

million in debt outstanding with a $10\%$

interest rate. The terms of the loan require the firm to repay $ $25$

million of the balance each year. Suppose the marginal corporate tax rate is $25\%$

$,$

and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from this$$ debt?

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Part $1$

The present value of the interest tax shields is $$$enter your response here

million.$($Round to two decimal$$ places.$)$