5. Analysis of an expansion project Hungry Whale Electronics is considering an investment that will have the following sales, variable costs, and fixed operating costs: 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 ife. Hungry Whale Electronics 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 ushe straighthe depreciation, the project's NPV is Usiog the depreciation method will result in the greater NPV for the project. No other firm would take on this project if Hungry Whale Electronics turns it down. How much should Hungry Whale Electronics reduce the NPV of this project if it discovered that this project would reduce one of as division's net after-tax cash fows by $700 for each year of the four-year project? $1,629 52,772 \$1, 046