Companies invest in expansion projects 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: Unit sales Sales price Variable cost per unit Fixed operating costs except depreciation Accelerated depreciation rate Year 1 Year 2 4,2004,100 $29.82 $30.00 $12.15 $13.45 41,000 $41,670 45% Year 3Year 4 4,300 4,400 $30.31 $33.19 $14.02 $14.55 $41,890 $40,100 7% 33% 15% This project will require an investment of $20,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. McFann 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 $53,097 $36,937 $46,171 $55,405