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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 500000 - 170000 - 100,000 230000 - 80500 149500 100,000 - 20,000 Year 2 500000 170000 100,000 230000 - 80500 149500 100,000 - 20,000 Year 3 500000 170000 100,000 230000 - 80500 149500 100,000 - 20,000 - 300,000 229500 229500 229500 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 proiect. The depreciation schedule shown is for three-vear straight-line depreciation By how much would the net present value (NPV) of this proiect be increased if the cars O A. $7,266 OB. $9,082 OC. $22,705 OD. $10,898 - OVOU OUOU - OOUU - Taxes (3370) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow 149500 100,000 - 20,000 149500 100,000 - 20,000 149500 100,000 - 20,000 - 300,000 229500 229500 229500 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 o 33.33% Year 1 44.45% Year 2 14.81% Year 3 7.41% MACRS Depreciation Rate A. $7,266 B. $9,082 C. $22,705 D. $10,898