hard · Private Equity & LBOs
A buyer executes a 338(h)(10) election on a $400M deal, resulting in $150M of stepped-up assets amortizable over 15 years.
With a 25% tax rate and a 10% discount rate, what is the approximate Net Present Value (NPV) of the tax shield generated by this election?
- $15.0M
- $25.0M
- $19.0M
- $37.5M
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