Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Carida Ca: Garida Co. is consideting an imvestment that will have the follewing sales, variable costs, and fixed operating costs: This project will require an investment of $20,000 in new equipment. Under the new tax law, the equipment is eligible for 1004 benus deprecation at t=0,so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project's four-year life. Garida pays a constant tax rate of 25\%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NFr) would be under the new tax law. Which of the following mast closely approwimates what the project's net present value (NPV) would be under the new tax law?(Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) 541,188.97 351,783,45 546,337,59 551,45521 Which of the of the following most closely approximates what the project's NPV would be when using straight-iline depreciation? (Hint: Round your Ainal answer to two decimal ptaces and choose the value that most closely matches your answer.) $47,846.05 $52,955.33 $50,364,26 357,918.90 Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project if Garida turns it down, Which of the following most closely approximates how much Garida should reduce the Nov of this project, assuming it is discovered that this project would reduce one of its division's net after-tax cash flows by $500 for each year of the four-year project? (Hint Round your final answer to two decimal places and cheose the value that most closely matches vour answer.) $1,551.22 5950.73 $1,163.42 11,700,34 The project will require an initial investment of $20,000, but the project wil also be using a company-owned truck that is not currentiy being used. This truck could be sold for $9,000, afier taxes, if the project is rejected. What should Garida do to take this informatien into accounk? The compeny does not need to do amything with the value of the truck because the truck is a sunk cost. Inctese the wipy of the project by 59,000 Increase the amount of the initial imvestment by $9,000