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endy'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 $700,000 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 50%. What wouldthe depreciation expense be each year under each method? YearScenario 1 (Straight Line) Scenario 2 (MACRS) 1 $ $ 2 3 4 Whichdepreciation method would produce the higher NPV? How much higherwould it be? Round your answer to the nearest dollar.