Nokela Inc. purchases a $20 million cycloconverter for a project. The cycloconverter will be depreciated over four years. Suppose Nokela has two choices for the depreciation schedule: Schedule A and Schedule B. According to Schedule A, the value of the cycloconverter will decay linearly. According to Schedule B, the value of the cycloconverter will decay faster (40% in year 1, 30% in year 2, 20% in year 3, and 10% in year 4).

	Schedule A	Schedule B
% value depreciated in Year 1	25%	40%
% value depreciated in Year 2	25%	30%
% value depreciated in Year 3	25%	20%
% value depreciated in Year 4	25%	10%

Which depreciation schedule leads to higher NPV of Nokelas project?

A. The two schedules lead to the same NPV of Nokela's project.

B. Depreciation schedule B leads to higher NPV of Nokela's project.

C. Depreciation schedule A leads to higher NPV of Nokela's project.