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: This project will require an investunent of $15,000 in new equipment. The equipment will have no salvage value at the end of the preject's four-year life. Mofann parys a constant tax rate of 40%, and it has a weighted average cost of capltal (wacc) of 11%, Determine what the project's net present value (NPV) would be when using accolerated depreciation. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your intermediate calculations to the nearest whole number.) $34,479 343,099 $51,719 338,789 Now determine what the project's NPV would be when using straight-line depreciation. Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project if McFann turns it down. How much should Mcfann 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? $1,117 $2,047 31,396 $1,861