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
Correct Answer:
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