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Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $550,000 of equipment and is eligible for 100% bonus

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Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $550,000 of equipment and is eligible for 100% bonus deprecation. 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 is 4 year e cignore the half-year convention for the straight line method). The company's WACC is 11%, and its tax rate is 30% What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest dolor Scenana Scenano 2 (Straight) (Bonus Depreciation) 0 $ 5 Year 5 1 2 5 $ $ 5 $ 4 beprecatan wythod would produce the higher HPV How much higher would the NPV be under the preferred method? Do round imediat calon. Round your answer to the nearest colle

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