Wendy$$s boss wants to use straight$-$line depreciation for the new expansion project because he said it will give higher net income in earlier years and give him a larger bonus. The project will last $4$ years and requires $$1,700,000$ of equipment. The company could use either straight$-$line or the $3-$year MACRS accelerated method. 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 straight$-$line method.$)$ The applicable MACRS depreciation rates are $33\mathrm{.}33\%,44\mathrm{.}45\%,14\mathrm{.}81\%,$ and $7\mathrm{.}41\%,$ as discussed in Appendix $11$A$.$ The project cost of capital is $10\%,$ and its tax rate is $25\%.$

a$.$ What would the depreciation expense be each year under each method?

b$.$ Which depreciation method would produce the higher NPV$,$ and how much higher would it be$?$

c$.$ Why might Wendy$$s boss prefer straight$-$line depreciation?