Companiet invest in expansion projects with the expectation of Increasing the earning of its business, Consider the case the case or Phantant Pharmaceuticals Pheasant Pharmaceuticals is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 4,800 $22.30 Year 2 5.100 Yaar 5,000 $23.85 Year 4 5,120 $24.45 Unit sales (unit) Sales price Variable cost per unit ed operating costs except depreciation Accelerated depreciation rate $23.45 $10.85 $12.00 $9.45 $32.500 $11.95 $34,950 $33.450 $34,075 45 159 74 This project will require an investment of $20,000 in new equipment. The equipment will have no salvage value at the end of the project's four year life. Pheasant Pharmaceuticals pays a constant tax rate of 40% and it has a required rate of return of 11% (Hint: Round each element in your computation When using scenerated depreciation, the project's not present value (NPV) Induding the project's net present value to the nearest whole dolar) (Hint: Agnin, round each element in your computation--including the When using straight line depreciation, the project's NPV project's net present value-to the nearest whole dar) Using the deprecation method will result in the greater NPV for the project No other firm would take on this project if Pheasant Pharmaceuticals turns it down. How much should Pheasant Pharmaceuticals reduce the NPV of this project if it discovered that this project would reduce one of its division net after-tax cash flows by 5400 for each year of the four year project? No other firm would take on this project if Pheasant Pharmaceuticals turns it down. How much should Pheasant Pharmaceuticals 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 $400 for each year of the four-year project? $745 O $1,365 $1,241 O $1,055 Pheasant Pharmaceuticals spent $1,750.00 on a marketing study to estimate the number of units that it can sell each year. What should Pheasant Pharmaceuticals do to take this information into account? The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. Increase the NPV of the project $1,750.00 Increase the amount of the initial investment by $1,750.00