. Question 25 Year 0 Revenues Cost of Goods Sold Depreciation | EBIT Taxes (35%) Unlevered net income Depreciation Additions to Net Working Capital - Capital Expenditures - Free Cash Flow Year 1 Year 2 Year 3 500.000 500.000 500.000 150,000 -150.000 150,000 - 100.000 - 100.000 -100,000 250.000 250.000 250.000 87.500 87,50087.500 162,500 162,500 162,500 100,000 100.000 100.000 -20,000 -20,000 20,000 -300.000 242,500 242,500 242,500 Visby Rides, a llvery 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%? Year o Year 1 Year 2 Year 3 MACRS Depreciation Rate 23.33 14814 71% o $22,705 O $10,898 $9082 0 $7266