Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $775,000 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 8%, 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	$	$

Which depreciation method would produce the higher NPV? Straight Line or Bonus Depreciation

How much higher would the NVP be under the preferred method?