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