Your Company is considering a new project that will require $890,000 of new equipment at the start of the project. The equipment will have a depreciable life of 6 years and will be depreciated to a book value of $188,000 using straight-line depreciation. The cost of capital is 14%, and the firm's tax rate is 21%. Estimate the present value of the tax benefits from depreciation.

• $117,000

• $95,545

• $92,430

• $24,570