Problem $12-2$ PV of Depreciation Tax Benefits $($LG$12-4)$

Your company is considering a new project that will require $$985,000$ of new equipment at the start of the project. The equipment will have a depreciable life of $9$ years and will be depreciated to a book value of $$157,000$ using straight$-$line depreciation. The cost of capital is $12$ percent, and the firm's tax rate is $35$ percent.

Estimate the present value of the tax benefits from depreciation. $($Round your answer to $2$ decimal places.$)$