Use the Table for the Question(s)below

question 24

Multiple Choice

Use the table for the question(s) below.
-Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.The depreciation schedule shown is for three-year,straight-line depreciation.By how much would the net present value (NPV) of this project be increased,if the cars were depreciated by the MACRS schedule shown below given that the cost of capital is 10%?

• A)$8,342
• B)$9,083
• C)$10,112
• D)$25,912

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Definitions:

Descending Plate

In plate tectonics, a slab of the Earth's lithosphere that is moving downward into the mantle at a convergent boundary.

Decreasing Pressure

A reduction in the force exerted by a fluid (gas or liquid) on a surface.

Partial Melting

the process where only a portion of a solid is melted, which often occurs in the Earth's mantle.

Melting Temperatures

The temperatures at which solid materials become liquids.