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 $25,000 in new equipment. Under the new tax law, the equipment is aligible for 100ed bonus deprecation at t=0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project's four-yoar life. Yeatman pays a constant tax rate of 25%, and it has a weighted average cost of copital (WAcC) of 11% volue (NPV) would be-under the new tax law. Which of the foliowing most closely approximates what the project's nek present value (NPV) would be under the new tax law?(Hint: Round your final onswer to two decumal places and choose the value that most closely matches your answer) 113,821,03 117,660,20 $18,428.04 115,356.70 Which of the of the following most closely approximates what the project's NPV would be when using straight-line depreciation? (Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) $13,256,56$17,442,84$13,954,27$16,047,41 Using the depreciation method will result in the highest Niv for the project. No other firm would take on this project if Yeatman turns it down. Which of the following most closely approximates hew much Yeatman should reduce the NPy of this project, assuming it is discovered that this project would reduce one of iss division's net after-tax cash flows by $400 for each year of the four-year projoct? (Hint: Round your final answer to two decimal places and choose the value that most closely matches your answen) 5930.74 11,054,83 $1,240,94 51,365.08 Yeatman spent 52,250 on a marketing study to estimate the number of unhts that it can sell each year. Whet should Yeatman do to take this information into account? Increase the NPV of the project 52,250 The campany does not need to do arything with the cost af the marketing stedy because the marketing study is a sunk cost. Increase the amount of the initiol investment by $2,250