Companies invest in expansion projects with the expectation of increasing the earning of its business Consider the case of McFann Co. Mcrann Co. is considering on investment that will have the following sales, variable costs, and fixed operating costs Year 2 3,250 $17.33 Year 4 3,400 Year 3,000 $17.25 58.38 Urut sales Sales price Variable cost per unit Fixed operating costs Year 3 3,300 $17.45 59.03 $18,24 $8.92 $9.06 $12.500 515,000 513,220 $13,250 this project will quite an ivestment of $15,000 in new ht. Under the new tax low, the penatis eligible for 100% bonus deprecation at 10, will be fully deprecated at the time of purchase. The quipment will have no salvage value at the end of the project four year life. Mcfann Dinys a coolant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's not present value (NPV) would be under the wax Detee what the projecte present Value (NIV) would be under the new tax law 52430 $20,573 $26,207 How determine what the project would be when using straight line depreciation Using the method will result in the highet for the pret mwen turn it down on macht de the of the project that induce o edit net wher-tax cows by 5400 for each of the four ye 51.055 1951 O. OS M2.00 in the cat should o the wested to do anything will be contre molto become the marketing study co them the web 2.500 2.00