TransMetro Incorporated Has EBIT of $1 Million for the Current

TransMetro Incorporated has EBIT of $1 million for the current year.On the firm balance sheet,there is $6 million of debt outstanding that carries a coupon rate of 15 percent.Investors seek a return of 20 percent on the firm,and the firm has a corporate tax rate of 40%.What is the present value of the firm's tax shields?

A) $2,000,000
B) $2,200,000
C) $2,400,000
D) $2,700,000