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Year 0 Year 1 Year 2 Year 3 33.33% 44.45% 14.81% 7.41% MACRS Depreciation Rate A fast-food company invests $2.6 million to buy machines for
Year 0 Year 1 Year 2 Year 3 33.33% 44.45% 14.81% 7.41% MACRS Depreciation Rate A fast-food company invests $2.6 million to buy machines for making slurpies. These can be depreciated using the MACRS schedule shown above. If the cost of capital is 13%, what is the increase in the net present value (NPV) of the product gained by using MACRS depreciation over straight-line depreciation for three years? Year 0 Year 1 Year 2 Year 3 33.33% 44.45% 14.81% 7.41% MACRS Depreciation Rate A fast-food company invests $2.6 million to buy machines for making slurpies. These can be depreciated using the MACRS schedule shown above. If the cost of capital is 13%, what is the increase in the net present value (NPV) of the product gained by using MACRS depreciation over straight-line depreciation for three years
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