If this amount can be used to offset income by 1 million


Ancient Alloys Corp. is interested in acquiring Advanced Technologies, Inc., in the expectation that the acquisition would provide the combined firms with $4 million in tax-shield benefits. If this amount can be used to offset income by $1 million each year for the next four years, what is the present value of the expected tax-shield benefit? The cost of capital is 14%.

Select one:

A. $877,193

B. $2,913,712

C. $3,508,772

D. $4,203,686

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Business Management: If this amount can be used to offset income by 1 million
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