$12-6$ DEPRECIATION METHODS Charlene is evaluating a capital budgeting project

that should last for $4$ years. The project requires $$800,000$ 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 analysis. Under

straight$-$line depreciation, the cost of the equipment would be depreciated evenly

over its $4-$year life. The company's WACC is $8\%,$ 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$?$