Estimate present value of the tax benefits

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Reference no: EM132041034

Your Company is considering a new project that will require $510,000 of new equipment at the start of the project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of $141,000 using straight-line depreciation. The cost of capital is 10%, and the firm's tax rate is 30%. Estimate the present value of the tax benefits from depreciation. $28,700 $41,000 $12,300 $70,836

Reference no: EM132041034

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