Black Sheep Broadcasting 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 (units)	4,200	4,100	4,300	4,400
Sales price	$29.82	$30.00	$30.31	$33.19
Variable cost per unit	$12.15	$13.45	$14.02	$14.55
Fixed operating costs except depreciation	$41,000	$41,670	$41,890	$40,100
Accelerated depreciation rate	33%	45%	15%	7%

This project will require an investment of $25,000 in new equipment. The equipment will have no salvage value at the end of the projects four-year life. Black Sheep Broadcasting pays a constant tax rate of 40%, and it has a required rate of return of 11%.

Part 1. When using accelerated depreciation, the projects net present value (NPV) is ($34,246 / $38,527 / $42,808 / $51,370). (Hint: Round each element in your computationincluding the projects net present valueto the nearest whole dollar.) Possible answers are bold.

Part 2. When using straight-line depreciation, the projects NPV is ($48,737 / $55,094 / $42,380 / $40,261) . (Hint: Again, round each element in your computationincluding the projects net present valueto the nearest whole dollar.) Possible answers are bold.