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Click here to read the Book Analysis of an Expansion Project DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4

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Click here to read the Book Analysis of an Expansion Project DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $725.000 fuent. She is sure what depreciation method to use in her analysis straight-line or the year MARS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated wel over its 4-year fegrere the half-year convention for the right-line method). The applicable MACRS depreciation rates are 33.454. 15. and. The company's WACC 12 and its tax rate is 19 .. What would the depreciation expense be each year under each mehed round your the restant Year Scenarie 2 (Straight-une) (MACRS) 1 2 4 b. Which depreciation method would produce the higher NAV How much higher would the NPV be under the preferred method Round your answer to the decimal places. Do not round your intermediate calculations 5

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