An asset is to be depreciated using MACRS and a 3-year recovery period. The applicable % rates are given below.

MACRS is an accelerated depreciation system. Why then is r₁ is less than r₂?

t	rt (%)
1	33.33
2	44.45
3	14.81
4	7.41

Group of answer choices

r2 is multiplied by BV1, not B, to obtain d2

The table above is incorrect

Only one-half year depreciation may be taken in year 1

To account for possible salvage value