3. Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the eamings of its business. Consider the case of Yeatman Co.: Yeatman Co. is considering an investment that will have the following sales, variable casts, and fixed operating costs: This project will require an investment of $25,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Yeatman pays a constant tax rate of 40%, and it has a weighted average cast of capital (WACC) af 11%. Determine what the project's thet present value (NPV) would be when using accelerated depreciation. (Note: Round your answer to the nearest whole dollar.) $51,370$42,808$38,527$49,229 Now detemine what the project's NPV would be when using straight-line depreciation. (Note: Round your answer to the nearest whole dollar.) The depreciation method will result in the hightest NPV for the project. No other firm would take on this project if Yeatman turns it down. How much should Yeatman reduce the NPV af this project is it discovered that this project would reduce one of its division's net after-tax cash flows by $700 for each year of the four-year project? (Note: Round your answer to the nearest whole dollar.) $2,389 $2,172$1,846$1,629 Yeatman spent $2,250 on a marketing study to estimate the number of units that it can sell each year. What should Yeatman do to take this information into account? Increase the amount of the initial investment by 52,250 . The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. Increase the NPV of the project 52,250