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Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $ 9 0 0 , 0 0 0 of

Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $900,000 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 life (ignore the half-year convention for the straight-line method). The company's WACC is 12%, and its tax rate is 20%.
What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest dollar.
Year Scenario 1
(Straight-Line) Scenario 2
(Bonus Depreciation)
0 $
$
1 $
$
2 $
$
3 $
$
4 $
$

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