Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Mclann Co:t Mcfaan Co, is considering an investment that will have the following sales, variable cosss, and fiked operating costs: This project will require an investment of $10,000 is new equegment. Under the new tax law, the equipment is eligible for 100% bonus deprecatios at t=0, wo is will te fully deprecated at the time of purchase. The equipment wili have no selvage value at the end of the project's fouryear life. Mcfann pays a constant tax fate of 252, and it has a weighted average cost of capital (wicC) of 11%. Determine what the project's net piesent value (NPV) would be under the new tax law. Which of the follswing mast closely approxinates ahat the project's net present value (NeV) wovld be under the new tax lawh( (Wint: Hound your final anwwer to two decimal places and choose the value that most closely matches your answer) $21,285.36$30,597.70$23,946.03$26,606.70 Which of the of the following most dosely approxinates what the projecty NPV would be when using streight-line depreciation? (Mint: Round your thal answer to two decimal places and choose the value that most closely matches your answer.) $29,952.59$32,557.16$24,743.44$26,045.73 Using the deprosiation method will resut in the figheit NPV for the project. No other firm would take on this projest it Mcfenn tirms it dam. Wrich of the following mout dosely approkimates hew thuch Mcram should redice the NiV of this preject, assuming it ia discovered that this project would reduce one of its divioms net aftertax cash floms by s3e0 for each year of the four-yeer propeot? (Hint: Rownd your final answer to the decimal places and dhoose the value that most dosely mutches your arsaee) $556.44 9930.73 4791.12 $698.05 Mofani spent 12,250 on a makebing study to ekemate the number of unita that it cas set sach year, What should Mcfann do to teke thik information inte acceount? Increase the amount of the initas investrent by 82,250 . Increse the tav of the proyect $2,250. The company does nut need to do amuling wath the cost of the marketing study thcouse the marketing study is a sunk cont