... increase its investment in receivables and inventories, over and above the increase in payables and accruals, thus increasing its net operating working capital (NOWC). Since this increase must ... standard deviation or the coefficient of variation. Hence, Project B is evaluated at the 12 percent cost of capital, while Project A requires only a 10 percent cost of capital. Using a financial ... MACRS allowance percentages of 0.33, 0.45, and 0.15 for Years 1, 2, and 3, respectively. Depreciation expense in Years 1, 2, and 3 is $56,100, $76,500, and $25,500. The depreciation tax savings...