A Fast-Food Company Invests $2

question 47

Multiple Choice

A fast-food company invests $2.4 million to buy machines for making slurpies.These can be depreciated using the MACRS schedule shown above.If the cost of capital is 10%,what is the increase in the net present value (NPV) of the product gained by using MACRS depreciation over straight-line depreciation for three years?

• A)$34,452
• B)$66,782
• C)$78,084
• D)$207,702

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Definitions:

Idealized Influence

A leadership approach where leaders become role models by acting in ways that inspire and earn the trust and respect of followers.

Transactional Leaders

Leaders who focus on supervision, organization, and performance; they are concerned with transactions between themselves and their followers.

Self-Interest

The motivation driven by one's own personal gain or benefit.

Empower Subordinates

Giving authority or power to lower-level employees, enabling them to take initiative and make decisions.