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4. ABC co. is trying to decide whether to use straight line depreciation or MACRS. They have a project that has a 10 year life.

image text in transcribed 4. ABC co. is trying to decide whether to use straight line depreciation or MACRS. They have a project that has a 10 year life. The equipment for the project will cost $100,000. They can either use 5-Year MACRS or straight line depreciation over 5 years. If the company's tax rate is 40%. Which type of depreciation will generate the highest NPV? How much larger will this NPV be

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