2. Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Yeatman Con : Yeatman Co, is considening an investment that will have the following sales, variable costs, and fixed operating costs: Thos neoject will require an investrient of s10,000 in new equipment, Under the new tax taw, the equigment is eligible for 100% bonus deprecation at 1. 0, so it wan he fully depreciated at the time of purchase, The equipment will have no salvape value at the end of the project's foun year life. Yeatman pays n constant tax rate of 25%, and it has a welohted sverege cost of captar (WaCG) of 11%, Determine what the project's net present value (hiper) would be undect the new tax law. Determine whit the project on net present value (NiV), would be under the new tax law. 14104,146 463.349 592,767 1125,023 No other firm would take on this project if Yeatman turns it down. How much should Yeatman reduce the NPV of this project if it discovered that this project would reduce one of its division's net after-tax cash flows by 5600 for each year of the four-year project? 52,04741,851$1,117$1,396 moedie the sigy of tie project by $4,000. Incraput the amourit of the ienelal iryestment by 54,000 . D. The company does not need to do anything with the watiat of the truck because the truck is a sunk cost