Visby Rides, a Livery Car Company, Is Considering Buying Some

question 89

Multiple Choice

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) $7266
• B) $9082
• C) $10,898
• D) $22,705

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Definitions:

Radical Behaviorism

A branch of psychology that studies behavior through the lens of environmental and biological influences, dismissing the relevance of mental states.

Social Isolation

A state where an individual lacks a sense of social belonging, social engagement, or social contact with others, leading to feelings of loneliness and social disconnection.

Avoidant Behaviors

Actions undertaken to escape from or avoid situations that cause anxiety, often leading to reinforcement of the behavior through negative reinforcement.

Evolutionary Psychology

A theoretical approach to psychology that seeks to explain traits, behaviors, and psychological processes by understanding them in terms of evolutionary adaptations.