You have just purchased a small apartment complex that has a $1,000,000 depreciable basis. Assume no personal property. You are in the 28 percent ordinary tax bracket and 25 percent depreciation recapture bracket. Capital gains will be taxed at 15 percent. You discount future tax benefits from depreciation at 7 percent. Ignore the midmonth convention.

If you sold the property at the end of five years, what would be the present value of the depreciation deductions, net of all taxes due on sale?