DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $650,000 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, t e cost o the equipment would be depreciated evenly over its 4-year life gnore the half year convention or the straight-line met d The applicable M S depreciation rates are 3396 45% 15% and 7%, The company's WACC is 14%, and its tax rate is 40% a. What would the depreciation expense be each year under each method? Round your answers to the nearest cent. Scenario 1 (Straight-Line) Scenario 2 (MACRS) Year b. Which depreciation method would produce the higher NPV? How much higher would the NPV be under the preferred method? Round your answer to two decimal places. Do not round your intermediate calculations