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please be thorough and I will like and support thank you Charlene is evaluating a capital budgeting project that should last for 4 years. The
please be thorough and I will like and support thank you
Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $450,000 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 analyses. Under straight-line depreciation, the cost of the equipment would be deprecated evenly over its 4-year lite ignore the half-year convention for the straight-line method). The company's WACCE 10%, and its tax rate i 20% 3. What would the depreciation expeme be each year under each method? Enter your answers as positive values. Round your answers to the nearest dollar Scenario 1 Scenario 2 (Straight Line) (Bonus Depreciation) $ 1 $ $ S $ $ $ Year 0 S $ 2 $ 4 b. Which depreciation method would produce the higher NPV? How much higher would the NPV be under the preferred method? Do not our intermediate calculations. Round your answer to the nearest dollar $ Step by Step Solution
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