analysis of an expansion project - help please

2. 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: This project will require an investment of $15,000 in new equipment. The equipment will have no salvage value at the end of the project's four year life. Fox pays a constant tax rate of 40%, and it has a weighted average cost of capital (WacC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: flound your intermediate calculations to the nearest whole number) $79,259 $95,111 571,333 $91,148 Determine what the project's net present value (NPV) would be when using acolierated depreciation. (Note: Round your intermediate calculations to the nearest whole number.) 579,259 595,111 $71,333 $91,148 Now determine what the projectis Nov would be when using straight-line depreciation. Uaing the depreclation method will result in the highest fov for the profect. No other firm would take on this project if fox tums it down. Mow much should Fox reduce the NPV of this project if it discovernd that this prolect would reduce one of its division's net after. tax cash flows by $300 for each year of the four-vear project? \$791 13000 5991 1.1.024