Your firm is considering a project that would require purchasing $7.9 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the firm's tax rate is 32% the appropriate cost of capital is 8% and the equipment can be depreciated: (Round to 3 decimal places)

a. Straight-line over a ten-year period, with the first deduction starting in one year.

b. Straight-line over a five-year period, with the first deduction starting in one year.

c. Using MACRS depreciation with a five-year recovery period and starting immediately.

d. Fully as an immediate deduction.