Question: 5. Problem 12.06 (Depreclation Methods) Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $825,000 of equipment and

 5. Problem 12.06 (Depreclation Methods) Charlene is evaluating a capital budgeting

5. Problem 12.06 (Depreclation Methods) Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $825,000 of equipment and is elighble for 1001 bonus deprediation. she in untic whether immediately expenaing the equipment or using straight-line depreciation is better for the analysis. Under straight-iline depreciation, the cont of the equigment mouid be depreciated evenly over its 4 -year life (ignore the half-year conventlon for the straight-line method). The company's wacc, is 12%, and its tax rate is asw. a. What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest deliaz b. Which deareciation method would produce the higher NPV? Hifww murninanar would the NpV be under the preferred method? Do not round intermediate calculations. Round your answer to the nearest dofiar: 5

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