[elppadas]

Thank you so much. I have wasted 4 hrs analyzing where is the 8% from.

Thanks again.

[elppadas]

Dear Sir

I do not understand where the interest rate of 0.08 is derived from.
Before-tax interest saving = 10,000,000 x 0·08 = $800,000 per year
After-tax interest saving = 800,000 x (1 – 0·3) = $560,000 per year

Thanks

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