0 eBook Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $325,000 of equipment and is eligible for 100% bonus depreciation. She is unsure whether immediately expensing the equipment or u Under straight-line depreciation, the cost of the equipment would be depreciated evenly over Rs 4-year life (ignore the half-year convention for the straight-line method). The company's WACC u 11%, and its tax rate is 30%. a. What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest dollar Year Scenario 1 Scenario 2 (Bonus Depreciation) (Straight-Line) 0 $ $ 1 1 $ 2 $ $ 3 $ 5 $ 5 b. Which depreciation method would produce the higher NPV? -Select- How much higher would the NPV be under the preferred method? Do not round intermediate calculations. Round your answer to the nearest dollar Joy 25,000 of equipment and is eligible for 100% bonus depreciation. She is unsure whether immediately expensing the equipment or using straight-line depreciation is better for the analysis. life (ignore the half-year convention for the straight-line method). The company's WACC is 11%, and its tax rate is 30% tive values. Round your answers to the nearest dollar tions. Round your answer to the nearest dollar. eBook marlene is evaluating a capital budgeting project that should last for 4 nder straight-line depreciation, the cost of the equipment would be de What would the depreciation expense be each year under each meth Year Scenario 11 Scenario 2 (Straight-Line) (Bonus Depreciation) $ $ 1 $ $ 2 $ 3 $ 4 $ Which depreciation method would produce the higher NPV? -Select- D uld the NPV be under the preferred method? Do no- Straight-Line Bonus Depreciation Icon Key nunu $