Your company is considering a new project that will require 100,000 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 25,000 using straight-line depreciation. The cost of capital is 11 percent, and
the firm's tax rate is 21 percent. Estimate the present value of the tax benefits from depreciation.
Multiple Choice
34,894
44,169
9,276
16,997