Your Company is considering a new project that will require $740,000 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 $128,000 using straight-line depreciation. The cost of capital is 11%, and the firm's tax rate is 30%. Estimate the present value of the tax benefits from depreciation.

a. $129,454

b. $102,000

c. $30,600

d. $71,400

Your Company is considering a new project that will require $680,000 of new equipment at the start of the project. The equipment will have a depreciable life of 8 years and will be depreciated to a book value of $216,000 using straight-line depreciation. The cost of capital is 12%, and the firm's tax rate is 34%. Estimate the present value of the tax benefits from depreciation.

a. $19,720

b. $38,280

c. $97,962

d. $58,000