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 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 11%, and its tax rate is 25%.

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 $

How much higher would the NPV be under the preferred method? Do not round intermediate calculations. Round your answer to the nearest dollar. $