Your Company is considering a new project that will require $100,000 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 $5,000 using straight-line depreciation. The cost of capital is 14%, and the firm's tax rate is 30%. Estimate the present value of the tax benefits from depreciation.

14865.93

Explanation:

Calculation to Estimate the present value of the tax benefits from depreciation.

First step is to calculate the Annual depreciation expense

Annual depreciation expense = [100000 - 5000]/10

Annual depreciation expense = 9500

Second step is to calculate the Tax benefit

Tax benefit = 9500(.30)

Tax benefit = 2850

Now let calculate the PV of tax benefit

Using financial calculator

PMT = 2850

FV = 0

N = 10

i = 14

PV=?

Hence

PV = 14865.93

Therefore the present value of the tax benefits from depreciation is 14865.93

b.

c.

d.

g.

those r all of them i believe

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.