Multiple Choice
A fast-food company invests $2.2 million to buy machines for making slurpees. 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) $28,559
B) $47,599
C) $76,158
D) $190,321
Correct Answer:
Verified
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