5. Problem 12.06 (Depreciation Methods) ebook Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $825,000 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. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year e ignore the all-year convention for the straight-line method). The company's WACC # 12, and its tax rates 20%. 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, Scenario 1 Scenario 2 (Straight Line) (Bonus Depreciation) Year 0 1 5 $ 5 5 5 $ 3 4 b. Which depreciation method would produce the higher NPV? How much higher would the NPV be under the preferred method? Do not round Intermediate calculations. Round your answer to the nearest dollar $ Grade It Now Save & Continue Continue without saving a. What would the depreciation expense be each year under each method? Enter y Year Scenario 1 (Straight-Line) Scenario 2 (Bonus Depreciation) $ $ 0 1 $ 2 EA TA 3 A A 4 b. Which depreciation method would produce the higher NPV? -Select- Straight-Line vould the NPV be under the preferred method? Do not round in Bonus Depreciation