A $20 Million Project Is Expected to Return $23 Million

A $20 million project is expected to return $23 million next year. Your firm is in a 40% combined federal and state marginal income tax bracket. You finance the project with $10 million in debt at a rate of 8%.
-Refer to the information above. If the appropriate project interest rate is 10%, what is the present value of the tax savings due to financing the project with debt?

A) $727,273
B) $290,909
C) $72,727
D) $436,364