Your Company is considering a new project that will require $$780,000$ of new equipment at the start of the project. The equipment will have a depreciable life of $7$ years and will be depreciated to a book value of $$38,000$ using straight$-$line depreciation. The cost of capital is $11\%,$ and the firm's tax rate is $21\%.$ Estimate the present value of the tax benefits from depreciation.

Multiple Choice

$$83,740$

$$22,260$

$$104,893$

$$106,000$