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Hope Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $125,000 of equipment and is eligible for 100%

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Hope Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $125,000 of equipment and is eligible for 100% bonus depreciation. She is unsure whether immediately expensing the equipment or using straight-line depreciation is better for the analysis. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-yearlife (Ignore the half-year convention for the straight-line method). The company's WACC is 8%, and its tax rate is 30%, a. What would the depreciation expense be ench year undar each method? Enter your answers as positive values. Round your answers to the nearest dollar Year Scenario 1 (Straight-Line) 5 Scenario 2 (Bonus Depreciation) 5 0 1 $ $ 2 $ $ $ 3 3 $ $ 4 5 b. Which depreciation method would produce the higher NPV? -Select How much higher would the NPV be under the preferred method? Do not round Intermediate calculations. Round your answer to the nearest dollar $

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