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Your company is considering a new project that will require $955000 of new equipment at the start of the project. The equipment will have a

Your company is considering a new project that will require $955000 of new equipment at the start of the project. The equipment will have a depreciatable life of 9 years and will be depreciated to a book value of$154000 using strait line depreciation. The cost of capital is 12 percent and the firm tax rate is 35 percent. Estimate the present value of the tax benefits from depreciation.

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