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 investment of $15,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus depreca 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 ife. 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 would be under the new tax law. Which of the following most closely approximates what the project's net present value (NPV) would be under the new tax law? (Hint: Round your answer to two decimal places and choose the value that most closely matches your ansiver.) $56,952.70 $50,524.62 $63,280.78 575.936,94 Which of the of the following mont closely approximates what the project's NPV would be when using straight-line depreciatisn? (Hint: Found your final answer to two decimal places and choone the value that most dosely matches your answes) 562.439.33 $78.049.16 571,005.23 $59.317.36 Using the deprecation method sill result in the bighent NPV for the phoject. Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project if Mchann turns it down. Which of the following most dosely approximates how much McFann should reduce the NPV of this project, assuming it is discovered that this project would reduce one of its division's net after-tax cash fiows by 5700 for each year of the four-year project? (Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) 52,388.88 $2,171,1 51,62B,78 $1,303.03 The project will require an initial investment of 515,000 , but the project wil also be using a company-owned truck that is not currently being used. This truck could be sold for $18,000, after taxes, if the project is rejected. What should Merano do to take this information into account? Increase the NPV of the project by $18,000. The company does not need to do arigthing with the value of the truck because the truck is a sunk cost. Increase the armount of the initial investment by $18,000