Question: Your Company is considering a new project that will require $560,000 of new equipment at the start of the project. The equipment will have a

Your Company is considering a new project that will require $560,000

Your Company is considering a new project that will require $560,000 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 $192,000 using straight-line depreciation. The cost of capital is 10%, and the firm's tax rate is 34%. Estimate the present value of the tax benefits from depreciation. $15, 640 $30, 360 $83, 438 $46,000

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