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. Aa Aa Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 3,000 3,250 3,300 3,400 $17.25 $17.33 $17.45 $18.24 $8.88$8.92 $9.03 $9.06 Fixed operating costs except depreciation $12,500 $13,000 $13,220 $13,250 7% Unit sales Sales price Variable cost per unit Accelerated depreciation rate 33% 45% 15%