A manager can choose between the following depreciation schedules for a project that has $1 million initial investment, and project life of ten years:

Year Schedule A Schedule B Schedule C Schedule D

1 33.33% 20.00% 14.29% 25.00%

2 44.45% 32.00% 24.49% 25.00%

3 14.81% 19.20% 17.49% 25.00%

4 7.41% 11.52% 12.49% 25.00%

5 11.52% 8.93%

6 5.76% 8.92%

7 8.93%

8 4.46%

To maximize the project NPV he should choose:

Schedule B

Schedule C

Schedule D

Schedule A

To not apply depreciation and use the whole value of the initial investment as a tax cost at the end of the project when they sell the used equipment.

Amanager can choose between the following depreciation schedules for a project that has $1 million initial investment, and project life of ten years: Year Schedule A Schedule B Schedule C Schedule 33.33% 20.00% 14.29% 25.00% 1 2 44.45% 32.00% 24.49% 25.00% 3 14,81% 19.20% 17.49% 25.00% 4 7.41% 11.52% 12.49% 25.00% 5 11.52% 8.93% 6 5.76% 8.9296 7 8.93% 8 4.46% To maximize the project NPV he should choose: Schedule B Schedule Schedule Schedule To not apply depreciation and use the whole value of the initial investment as a tax cost at the end of the project when they sell the used equipment