3. Analysis of an expansion project Aa Aa Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Garida Co.: Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs Year 4 4,250 $38.50 $39.88 $40.15 $41.55 $22.34 $22.85 $23.67 $23.87 Fixed operating costs except depreciation $37,000 ?37,500 $38,120 39,560 7% Year 1 Year 2 Year 3 Unit sales Sales price Variable cost per unit 3,500 4,000 4,200 Accelerated depreciation rate 33% 45% 15%