Companies invest in expansion projec3 with the expectation of increasing the earnings of its business. Consider the case of McFann Co.: McFann Co. 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 saies 4,200 4,100 4,300 4,400 Sales price $29.32 $30.00 $30.31 $33.19 Variable cost per unit $12.15 $13.45 $14.02 $14.55 Fixed operatingoustsexceptdepreciation $41,000 $41,670 $41,390 $40,100 Accelerated depreciation rate 33% 45% 15% 7% This project will require an investment of $20,000 in new . . . 0 $46,171 equipment. The equipment Wlli have no salvage value at 0 $36 93? the end of the project's four-year life. McFann pays a O $41'554 Constant tax rate of 40%. and it has a weighted average 0 $53:09? dust of capital (WACQ of 11%. Determine what the project's net present value (NW) would be when using accelerated depreciation. Now determine what the project's NP'U would be when using straightline depreciation. v Using the depreciation method will result in the highest NP'U for the project