Your Company is considering a new project that will require $12,000 of new equipment at the start of the project. The equipment will have a depreciable life of 7 years and will be depreciated to a book value of $800 using straight-line depreciation. The cost of capital is 10%, and the firm's tax rate is 21%. Estimate the present value of the tax benefits from depreciation. Multiple Choice $336 $1,264 $1,636 $1,600