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 Garide Co.: Garida C0. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $15,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t=0, so it will be fully depreciated at the time of purchase. The equipment will htre no salvage value at the end of the project's four-year life, Garida pays a constant tax rate of 25%, and it has a weighted averoge cost of capital (WACC) of 11%, Determine what the project's net present value (NPy) would be under the new tax law. Which of the following most dosely approximotes what the project's net present value (NPV) would be under the new tax law?(Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) Which of the following most closely appronamates what the project's net present value (NPV) would be under the new tax law?(Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) $27,428,04$18,285,36522,856,70$26,285,20 Which of the of the foliowing most dosely approximates what the project's NPV would be when using straighteline depreciation? (Hint Round your finel answer to two decimal places and choose the value that most dosely matches your answer.) $25,317.54$22,015,25$27,519.06$20,914,49 Using the depreciation method will result in the highest NPV for the ptoject. No other firm would take on this project if Garida tums it down. Which of the following most closely opproximates how much Garida should reduce the NPV of this project, assuming it is discovered that this project would reduce one of its division's net after-tax cash flows by $400 for each year of the four-year project? (Hint: Mound your final answer to two decimal places and choose the value that most closely matches your answer.) $1,054.83 51,365,08 $744.59 31,240.98 Gards spent 12,500 on a marketing study to estimate the mumber of units that if can sell each yaer. What should Garida do to take this information into account? The company does not need to do anything with the cost of the markethg study because the marketing study is a sunk cost. Increase the NPV of the project $2,500. Increase the amount of the inalia investment by $2,500