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

---

Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms, including processes for converting food to energy, constructing cellular materials, and discarding waste.

Glucose

An elementary sugar vital for energy in living entities and a key element of several carbohydrate types.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and absorbed by plants in photosynthesis.

Monosaccharides

Simple sugars that are the most basic form of carbohydrates, including glucose and fructose.