Ch 6 NPV Decisions 3 Saved Help Save & Exit Submit Suppose that Sudbury Mechanical Drifters is proposing to invest $10 million in a new factory. It can depreciate this investment straight- line over 10 years. The tax rate is 40%, and the discount rate is 10%. 10 a. What is the present value of Sudbury's depreciation tax shields? points b. What would be the present value of the tax shield if the government allowed Sudbury to write-off the factory immediately? Complete this question by entering your answers in the tabs below. eBook Required A Required B Print References What is the present value of Sudbury's depreciation tax shields? Note: Enter your answers in millions rounded to 1 decimal place. Depreciation straight-line, 10-year Tax Shields at 40% tax rate PV (Tax Shields) at 10% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total S 1.0 Required A Required B > Mc Hill Graw < Prev 3 of 5 Next > Check my work