3. Analysis of an expansion project Pheasant Pharmaceuticals is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 3 3,300 Year 2 3,250 $17.33 Year 4 3,400 Sales (units) 3,000 $17.25 Sales price $17.45 $18.24 Variable cost per unit $8.88 $8.92 $9.03 $9.06 Fixed costs, excluding depreciation $12,500 $13,000 $13,220 $13,250 Accelerated depreciation rate 33% 45% 15% 7% 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. Pheasant Pharmaceuticals pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated depreciation, the project's net present value (NPV) is When using straight-line depreciation, the project's NPV is