Click here to read the eBook: Analysis of an Expansion Project DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $275,000 of equipment. She is unsure what deprec analysis, straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated even the half-year convention for the straight-line method). The applicable MACRS depreciation rates are 33%, 45%, 15%, and 7%. The company's WACC I- 30% a. What would the depreciation expense be each year under each method? Round your answers to the nearest cent. Scenario 1 Scenario 2 (Straight-Line) (MACRS) Year 1 $ 2 3 4 b. Which depreciation method would produce the higher NPV? -Select- How much higher would the NPV be under the preferred method? Round your answer to two decimal places. Do not round your intermediate Click here to read the eBook: Analysis of an Expansion Project DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $275,000 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 the equipment would be depreciated evenly over ts 4-year life (ignore the half-year convention for the straight-line method). The applicable MACRS depreciation rates are 33%, 45%, 15%, and 79. The company's WACC 4124, and its tax ratta 30% What would the depreciation expense be each year under each method Round your answers to the nearest cent. Year Scenario 1 Scenario 2 (Straight-Line) (MACRS) $ $ 1 2 3 b. Which depreciation method would produce the higher NPV? Select- How much higher would the NPV be under the preferred method? Round your answer to two decimal places. Do not round your intermediate calculations $