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EEBIT - Taxes (20%) Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow 165000 - 33000 132000 100,000

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EEBIT - Taxes (20%) Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow 165000 - 33000 132000 100,000 20,000 165000 33000 132000 100,000 - 20,000 165000 - 33000 132000 100,000 - 20,000 300,000 212000 212000 212000 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. $20,189 B. $24,227 C. $50,473 D. $16,151 EEBIT - Taxes (20%) Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow 165000 - 33000 132000 100,000 20,000 165000 33000 132000 100,000 - 20,000 165000 - 33000 132000 100,000 - 20,000 300,000 212000 212000 212000 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. $20,189 B. $24,227 C. $50,473 D. $16,151

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