Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $850,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of equipment would be depreciated evenly over its 4-year life (ignore the half year convention for the straight-line method). The applicable MACRS depreciation rates are 33%, 45%, 15, and 7%. The company's WACC is 14%, and its tax rate is 35%. a. What would the depreciation expense be each year under each method? Round your answer to the nearest cent. b. Which depreciation method would produce the higher NPV? How much higher would the NPV be under the proffered method? Do not round your intermediate calculations