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Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $300,000 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 $300,000 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%. 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 Scenario 1 (Straight-Line) $ Scenario 2 (Bonus Depreciation) NO 1 $ $ $ $ 3 $ 5 $ 4 . 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 $ Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC 10.50% 0 2 Year Cash flows 3 $650 $540 5540 $540 2.264 years 1.1 64 years Soc. 1.36 years d. 2.35 years 1 43 years

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