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Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $425,000 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 $425,000 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 deprecation, the cost of the equipment would be depreciated evenly over its 4-year lite ignore the hait-year convention for the straight-line method). The company's WACC Is B%, and its tax rate is 20% a. 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 0 1 Scenario 1 (Straight-Line) $ $ $ $ 5 Scenario 2 (Bonus Depreciation) $ $ $ $ $ 2 3 4 b. Which depreciation method would produce the higher NPV? Select How much higher would the NPV be under the preferred method? Do not round intermediate calculations, Round your answer to the nearest dollar

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