ou are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an investment of $40,000 in new equipment. This equipment will be depreciated straight line over five years. If your firm's marginal corporate tax rate is 40 %, then what s the value of the microbrewery's depreciation tax shield in the first year of operation? Select one: O a. $24,000 O b. $3,200 O c$16,000 O d. $4,800 General Motors has a weighted average cost of capital of 7 %. GM is considering investing in a new plant that will save the company $25 million over each of the first two years, and then $20 million each year thereafter, continuing indefinitely. If the investment is $150 million what is the net present value (NPV) of the project? Select one a. $144.8 million b. $101.3 million C$115.8 million d. $130.3 million