6. Problem 12.06 (Depreciation Methods) Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $775,000 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 depreclation, 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 company's wacC is 10%, 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 dollar: b. Which denreciation method would produce the higher NPV? How much nuener would the NPY be under the preferred method? Do not round intermediate calculations: Round your answer to the nearest dollar. 5