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Charlene is evaluating a copital budgeting project that should last for 4 years. The project requires $750,000 of equipment and is eligibie for toof bonus

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Charlene is evaluating a copital budgeting project that should last for 4 years. The project requires $750,000 of equipment and is eligibie for toof bonus depreciation. She is unsure whether immediately expensing the equlpment or using straight-line depreclation is better for the analysis. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4 -yesr life (ignore the half-year convention for the straight-line method). The compony's WACC is 10%, and its tax rate is 25%. a. What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest dol b. Which deoreclation method would produce the higher NPV? How much hlaher would the NPV be under the preferred method? Do not round intermediate calculations. Round your answer to the nearest dollar, 5

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