Wendy is evaluating a capital budgeting project that should last for 4yrs.the project requires $800,000.00 of equipmentshe is unsure what depreciation method to use in her analyses, straight-line or the 3yrs macrs accelerated methods. under straight-line depreciation,the cos of equipment would be depreciated over its 4yr life . The applicable MACRS depreciation rates are 33%, 45%, 15%, and 7%, as discussed. The company's WACC is 10% and its tax rate is 40%.
What would the depreciation expense be each year under each method?