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Migo7s Migo7s
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4 years ago
Year 0Year 1Year 2Year 3
MACRS
Depreciation Rate33.33%44.45%14.81%7.41%

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?

▸ $66,782

▸ $78,084

▸ $34,452

▸ $207,702
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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Niquegirl21!Niquegirl21!
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Migo7s Author
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4 years ago
Brilliant ツ
gage
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Thank you, thank you, thank you!
fxinternational
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Thanks
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