Your Company is considering a new project that will require $540,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and will be depreciated to a book value of $100,000 using straight-line depreciation. The cost of capital is 13%, and the firm's tax rate is 30%. Estimate the present value of the tax benefits from depreciation.

$30,800

$44,000

$13,200

$71,626