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Depreciation MethodsWendy's boss wants to use straight-line depreciation for the newexpansion project because he said it will give higher net income inearlier years and give him a larger bonus. The project will last 4years and requires $1,680,000 of equipment. The company could useeither straight-line or the 3-year MACRS accelerated method. Understraight-line depreciation, the cost of the equipment would bedepreciated evenly over its 4-year life. (Ignore the half-yearconvention for the straight-line method.) The applicable MACRSdepreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. Theproject cost of capital is 8%, and its tax rate is 40%.What would the depreciation expense be each year under eachmethod? Enter your answers as positive values. Do not roundintermediate calculations. Round your answers to the nearestdollar.YearScenario 1(Straight Line)Scenario 2(MACRS)1$ $ 2$ $ 3$ $ 4$ $ Which depreciation method would produce the higher NPV, and howmuch higher would it be? Do not round intermediate calculations.Round your answer to the nearest cent.The NPV under -Select: (Scenario 1, Scenario) will be higher by$ .