2. Analysis of an expsnsion project Comparies invest in expansion projects with the expectation of increasing the eacrings of its busineas. Consider the case of Fox Ca.: Foor Co. is considering an irvestment that will have the following sales, variable costs, and foced operating costs: This project wal require an investment of $25,000 in new equipment. The equipreent will have no salvage valve at the end of the profects four-vear valut (NPV) would be when using accelerated depreciation. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round vour intermedate calculations to the nearest whole number.] 149,229 $42.000 151.370 130,527 Now determine what the project's NPV would be when using straight-line depreciation. Using the depreciation method will result in the highest NPV for the project. No other firm would take on this projext if Fox turns it down. How much sbould Fex reduce the NPV of this project if it discovered that this project would reduce one of its division's net atter-tax cash flows by $400 for each vear of the four-year project? 51,241 51.365 51;055 $931