Your company is considering a new project that will require $2,000,000 of new equipment at the start of the project. The

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Your company is considering a new project that will require
$2,000,000 of new equipment at the start of the project. The
equipment will have a depreciable life of 10 years and will be
depreciated to a book value of $250,000 using straight-line
depreciation. The cost of capital is 12 percent, and the firm's tax
rate is 21 percent. Estimate the present value of the tax benefits
from depreciation. Multiple Choice
a)$68,250
B)$207,646
c)$175,000
d) $988,789