3. 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 Co.: Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprection Yeatman pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the projects net value (NPV) would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law. $67,032 $80,438$53,626 $77,087 $67,032 $80,438$53,626$77,087 Now determine what the project's NPV would be when using straight-line depreciation. Yeatman spent $2,250 on a marketing study to estimate the number of units that it can sell each year. What should information into account? 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 $2,250. Increase the amount of the initial investment by $2,250