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 $39$ percent. Estimate the present value of the tax benefits from depreciation.

$$68,250$

$$385,628$

$$175,000$

$$106,750$