Your company is considering a new project that will require $740,000 of new equipment at the start of the project. The equipment will have a depreciable life of 8 years and will be depreciated to a book value of $140,000 using straight-line depreciation. Neither bonus depreciation nor Section 179 expensing will be used. The cost of capital is 11 percent, and the firms tax rate is 21 percent.

Estimate the present value of the tax benefits from depreciation.