Revenues - Cost of Goods Sold - Depreciation - EBIT Taxes (20%) = Unlevered net income Year 0 Year 1 500000 - 165000 - 100,000 235000 - 47000 188000 Year 2 500000 - 165000 Year 3 500000 - 165000 - 100,000 - 100,000 235000 235000 - - 47000 - 47000 188000 188000 + Depreciation 100,000 Additions to Net Working Capital - 20,000 - Capital Expenditures - 300,000 = Free Cash Flow 268000 100,000 100,000 - 20,000 - 20,000 268000 268000 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%? Year 0 Year 1 Year 2 Year 3 MACRS Depreciation Rate A. $16,152 B. $24,228 C. $50,475 OD. $20,190 33.33% 44.45% 14.81% 7.41% ...