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Compsnies livest in expsnsion projects with the expectation of increasing the esrnings of its business. Consider the case of Garids Co.: Garida Co. is considering

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Compsnies livest in expsnsion projects with the expectation of increasing the esrnings of its business. Consider the case of Garids Co.: Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible far 100% bonus deprecation at t - 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end af the project's four-year life. Garida 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 (NPV) would be under the new tax law. Which af the fallowing most closely appraximates what the project's net present value (NPV) wauld be under the new tax law?(Hint: Raund your final answer to two decimal places and choose the value that moat dosely matches your answer.) $70,783.45$58,986.21$53,087.59$47,188.97 Which of the of the following mast closely approwimates what the project's NPV wauld be when using straight-line depreciation? (Hint: Raund your final answer to two decimal places and chonse the value that most closely matches your answer.) $73,031.55$55,503.98$67,189.03 458,425.24 Weing the depreciation method will result in the highest NPV for the project. No ather firm would take an this project if Garida turns it dawn. Which of the following most clasely appraximates how much Garida should reduce the NPV of this praject, assuming it is discovered that this project would reduce one of its divisian's net after-tax cash flows by $700 for each year of the four-year project? (Hint: Round your final answer to two decimal ploces and chaose the value that most closely matches your answer) $2,171.71 $1,628.78 $2,388.88 $1,303.03 Garida spent $1,750 on a marketing study to estimate the number of units that it can sell esch year. What should Garida do to take thi information ints account? Increase the NPV at the project $1,750. 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 amount of the initisl investment by $1,750. Compsnies livest in expsnsion projects with the expectation of increasing the esrnings of its business. Consider the case of Garids Co.: Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible far 100% bonus deprecation at t - 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end af the project's four-year life. Garida 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 (NPV) would be under the new tax law. Which af the fallowing most closely appraximates what the project's net present value (NPV) wauld be under the new tax law?(Hint: Raund your final answer to two decimal places and choose the value that moat dosely matches your answer.) $70,783.45$58,986.21$53,087.59$47,188.97 Which of the of the following mast closely approwimates what the project's NPV wauld be when using straight-line depreciation? (Hint: Raund your final answer to two decimal places and chonse the value that most closely matches your answer.) $73,031.55$55,503.98$67,189.03 458,425.24 Weing the depreciation method will result in the highest NPV for the project. No ather firm would take an this project if Garida turns it dawn. Which of the following most clasely appraximates how much Garida should reduce the NPV of this praject, assuming it is discovered that this project would reduce one of its divisian's net after-tax cash flows by $700 for each year of the four-year project? (Hint: Round your final answer to two decimal ploces and chaose the value that most closely matches your answer) $2,171.71 $1,628.78 $2,388.88 $1,303.03 Garida spent $1,750 on a marketing study to estimate the number of units that it can sell esch year. What should Garida do to take thi information ints account? Increase the NPV at the project $1,750. 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 amount of the initisl investment by $1,750

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