What is the present value of the tax savings

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A firm issues debt of $6 million at an interest rate of 7%. The debt has a 7-year maturity, and the first interest payment is due next year. The principal repayment and the last interest payment will be made at the end of year 7. If the firm is in the 35% tax bracket and the appropriate discount rate is 9%, what is the present value of the tax savings? Round your answer to the nearest dollar.

Reference no: EM132414200

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