5. Analysis of an expansion project Falcon freight is constering an investment that will have the tollowing sales, variable couts, and fixed operating costs: This project will require an investment of $10,000 in hew equipment. The equipment will have no salvoge value at the end of the project's foumyear ife. Falcon Freight pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated deprecietion, the project's net present velue (NPV) is When using straight-line depreciation, the project's Nov is Using the depereciation method will result in the greater NPV for the project. No other firm would take on this project if Falcon freight turns it down. How much should faicon Freight reduce the Niv of this project if it discovered that this project would reduce one of its covision's net after-tax cash fows by s30o for each yeor of the four-year project? 5931 s698 5791 $1,024 The project will require an intial investment of $10,000, but the prejed will alvo be ving a compeny-owned truck that is not carrently being used. This truck could be sold for $4,000, aner twes, if the project is rejected. What should falcon freight do to take this information inta account? Increase the Nev of the project by $4,000 The compary does not reed to do anything wath the vave of the truck becaves the truck is a sunk cost. Increese the amount of the initial invettment by $4,000