# DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The...

###### Question: DEPRECIATION METHODS Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $750,000 of equipment. She is unsure what depreciation method to use in her analysis, 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%, 45%, 15%, and 7%. The company's WACC is 14%, and its tax rate is 30%. a. What would the depreciation expense be each year under each method? Round your answers to the nearest cent. Year Scenario 1 (Straight-Line) Scenario 2 (MACRS) b. Which depreciation method would produce the higher NPV? | -Select- How much higher would the NPV be under the preferred method? Round your answer to two decimal places. Do not round your intermediate calculations. ## Answers #### Similar Solved Questions 1 answer ##### 6. Molar Density of Gases A. what is the density of Ne at 100 Celsius and... 6. Molar Density of Gases A. what is the density of Ne at 100 Celsius and 2.5 atm? B. what is the density of carbon dioxide at 25 Celsius and 1.0 atm? C. What is the molar mass of a gas with a density of 3.93 g/L at 250 K and 1 atm? 7. Application of Gas Laws: A. Calculate the molar mass of a gas if... 1 answer ##### Question 1 2 pts A walk to eo Viei. ... ... Uk is close if Vo... Question 1 2 pts A walk to eo Viei. ... ... Uk is close if Vo = UK O Up = 0 Ovi = UK O eo = 0 D Question 2 2 pts A trail in a graph can be described as a cycle with repeated edges a walk without repeated edges a walk with repeated edges O a line graph with one or more vertices Consider a graph G giv... 1 answer ##### A firm producing hockey sticks has a production function given by . In the short run,... 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Mark has borrowed \$22213 to finance the purchase a second hand car. The loan is to be repaid over five years with monthly payments. Interest on the loan is charged monthly at 9.2% p.a. How much will each payment be, if Mark makes the first payment right away, on the day the car is delivered? (Give y...
##### How do you evaluate 5x ^ { 2} - 3( 10- x ^ { 2} )?
How do you evaluate 5x ^ { 2} - 3( 10- x ^ { 2} )?...