Your Company is considering a new project that will require $1,010,000 of new equipment at the start of the project. The equipment will have a depreciable life of 7 years and will be depreciated to a book value of $460,500 using straight-line depreciation. The cost of capital is 11%, and the firm's tax rate is 21%. Estimate the present value of the tax benefits from depreciation (closest to).

Your Company is considering a new project that will require $790,000 of new equipment at the start of the project. The equipment will have a depreciable life of 5 years and will be depreciated to a book value of $255,000 using straight-line depreciation. The cost of capital is 12%, and the firm's tax rate is 21%. Estimate the present value of the tax benefits from depreciation.

Your company has spent $380,000 on research to develop a new computer game. The firm is planning to spend $58,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $6,800. The machine has an expected life of 7 years, a $43,000 estimated resale value, and falls under the MACRS 10-Year class life. Revenue from the new game is expected to be $480,000 per year, with costs of $280,000 per year. The firm has a tax rate of 21 percent, an opportunity cost of capital of 13 percent, and it expects net working capital to increase by $68,000 at the beginning of the project. What will be the net cash flow for year one of this project?