Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of McFann Co. McFenn Co. is considering an investment that will have the following sales, variable costs, and flxed operating costs: This project will require an investment of $10,000 in new equipment. Under the fiew tax law, the equipment is eligible for 1004 bshus depecation at t=0, so it will be fully deprecinted at the time of purchase. The equipment will have ne salvage value at the end of the preject's fouryear ife. Mcfann would be under the new tax law. Which of the following most dosely approximates what the project ret present value (NaW) would be under the naw tax law?(Hint: Round your final answer to two dedinel places and choote the value that most closely matches vour anewer.) $56,703.82$52,914,44$47,035.06$67,612.69 Which of the of the following most closely approximates what the profect's NPv would be when using stralght-line depreciation? (Hint: Round your finel answer to two decimal places and cheose the value that most closely matches your answer) 566,967.78 572,791.06 355,321.21 358,23285 Using the deprecintion method will result in the highest NPV for the project. No other firm would take on this project if Mcfann turns it down. Which of the following most closely appraximates how much McFann should reduce the NPV of this project, assuming it is discovered that this project would reduce one of its divislon's net after-tax cosh fows by $700 for esch year of the four-year project? (Hint: Round your finsl ansiner to two decimal places and choose the value that most closely mutches vour ananes) $2,171.71 51,307,07 $1,845,95 51,624,78 The project will recuire an initial investment of $10,000, but the project will also be using a compamy-oaned truck that is not currently being uted. This truck could be sold for 514,000 , after tanes, if the project is rejected, What should McFann do to take this informstisn into account? Increase the ameunt of the intial imestment by $14,000. thereste the Now of the project by 514,000 . The compeny does nat need to do anvthing with the volise of the truck because the truck is a sunk cost