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Black Sheep Broadcasting is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment

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Black Sheep Broadcasting 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-ye life. Black Sheep Broadcasting pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using acceierated depreciation, the project's net present value (NPV) is When using straight-line depreciation, the project's NPV is Using the depreciation method will result in the greater NPV for the project. 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 ife. Black Sheep Broadcasting 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 Using the depreciation method will result in the greater NPV for the project. No other firm would take on this project if Black Sheep Broadcasting turns it down. How much should Black Sheep Broadcasting reduce the NPV of this project if it discovered that this project would reduce one of its division's net after-tax cash flows by $600 for each year of the four-year project? $1,396$1,861$2,047$1,117 Black Sheep Broadcasting spent $1,500.00 on a marketing study to estimate the number of units that it can sell each year. What should Biack Sheep Broadcasting do to take this information into account? Increase the amount of the initial investment by $1,500,00. The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. Increase the NPV of the project $1,500,00

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