Problem 12.06 (Depreciation Methods) Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $350,000 of equipment and is eligible for 100% bonus depreciation. She is unsuri whether immediately expensing the equipment or using stralght-line depreciation is better for the analysis, Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life (ignore the half-year convention for the stralght-line method). The company's wacc is 9%, and its tax rate is 20\%. a. What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest doular: b. Whirh dinomeiation method would produce the higher NPV? wawmuch nugser would the NPV be under the peferred method? Do not round intermediate calculations: Round your answer to the nearest dollar