Your Company is considering a new project that will require $1,060,000 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 $225,000 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 (closest to).

• $17,535

• $103,268

• $83,500

• $65,965