Your Company is considering a new project that will require $1,050,000 of new equipment at the start of the project. The equipment will have a depreciable life of 7 years and will be depreciated to a book value of $472,500 using straight-line depreciation. The cost of capital is 10%, and the firm's tax rate is 34%. Estimate the present value of the tax benefits from depreciation (closest to).
$136,559
$54,450
$28,050
$82,500