Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires...

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Charlene is evaluating a capital budgeting project that shouldlast for 4 years. The project requires $725,000 of equipment. Sheis unsure what depreciation method to use in her analysis,straight-line or the 3-year MACRS accelerated method. Understraight-line depreciation, the cost of the equipment would bedepreciated evenly over its 4-year life (ignore the half-yearconvention for the straight-line method). The applicable MACRSdepreciation rates are 33%, 45%, 15%, and 7%. The company's WACC is14%, and its tax rate is 30%.
What would the depreciation expense be each year under eachmethod? Round your answers to the nearest cent.
Year. Scenario 1 (Straight-Line) Scenario 2 (MACRS)
1 $ $
2 $ $
3 $ $
4 $ $
Which depreciation method would produce the higher NPV?
How much higher would the NPV be under the preferred method?Round your answer to two decimal places. Do not round yourintermediate calculations.
$

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Charlene is evaluating a capital budgeting project that shouldlast for 4 years. The project requires $725,000 of equipment. Sheis unsure what depreciation method to use in her analysis,straight-line or the 3-year MACRS accelerated method. Understraight-line depreciation, the cost of the equipment would bedepreciated evenly over its 4-year life (ignore the half-yearconvention for the straight-line method). The applicable MACRSdepreciation rates are 33%, 45%, 15%, and 7%. The company's WACC is14%, and its tax rate is 30%.What would the depreciation expense be each year under eachmethod? Round your answers to the nearest cent.Year. Scenario 1 (Straight-Line) Scenario 2 (MACRS)1 $ $2 $ $3 $ $4 $ $Which depreciation method would produce the higher NPV?How much higher would the NPV be under the preferred method?Round your answer to two decimal places. Do not round yourintermediate calculations.$