To interpret the height of the school's roof using the formula \( y = -16t^2 + 40 \), we should evaluate the formula at \( t = 0 \), since this represents the initial moment when the egg is dropped (at the height of the roof).
Substituting \( t = 0 \):
\[ y = -16(0)^2 + 40 = 40 \]
Thus, the height of the school's roof is 40 feet.
Therefore, the correct response is:
40 feet.