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: Year 1 Year 2 Year 3 Year 4 Unit sales 4,400 4,200 4,100 4,300 Sales price $30.00 $30.31 $29.82 $33.19 Variable cost per unit $12.15 $13.45 $14.02 $14.55 Fixed operating costs $41,890 $40,100 $41,000 $41,670 This project willl require an investment of $25,00o0 in new equipment. Under the new tax law, the equipment is eligible for 100 % bonus deprecation at 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-year life. Fox t pays a constant tax rate of 25 %, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present 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. $55,782 O $64,149 O $44.626 O $66,938 tu