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 Fox Co.: Fox 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. The equipment will have no salvage value at the end of the project's four-year life. Fox pays a constant tax rate of 40%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your answer to the nearest whole dollar.) $66,098$95,015$82,622$99,146 Now determine what the project's NPV would be when using straight-line depreciation. (Note: Round your answer to the nearest whole dollar.) $107,186 depreciation method will result in the highest NPV for the project. $82,451 would take on this project if Fox turns it down. How much should Fox reduce the NPV of this project if it discovered that this project $103,064 one of its division's net after-tax cash flows by $400 for each year of the four-year project? (Note: Round your answer to the nearest The depreciation method will result in the highest NPV for the project. No o take on this project if Fox turns it down. How much should Fox reduce the NPV of this project if it discovered that this project woul ' its division's net after-tax cash flows by $400 for each year of the four-year project? (Note: Round your answer to the nearest whol $1,055$745$1,241$1,365 The project will require an initial investment of $10,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $9,000, after taxes, if the project is rejected. What should Fox do to take this information into account? Increase the amount of the initial investment by $9,000. The company does not need to do anything with the value of the truck because the truck is a sunk cost. Increase the NPV of the project by $9,000