Strauss Corporation is making a $76,900 investment in equipment with a 5-year life. The company uses the straight-line method of depreciation and has...

Strauss Corporation is making a $76,900 investment in equipment with a 5-year life. The company uses the straight-line method of depreciation and has a tax rate of 40 percent. The company’s required rate of return is 16 percent.What is the present value of the tax savings related to depreciation of the equipment?