drop down choices are bonus & straight-line

Comparies invert in expansion projects with the expectation of increasing the earnings of its business. Consider the csse of Yeatman Co Yeatman Co, is considering an irvestment that will have the foliowing sales, variable costs, and fred operating costs: This probect will reguire an inveitment of $20,000 in new equipment Under the new tax law, the equipment is elig ble for 100% bonus deprecation at t=0, to it will be fuly depkiclated at the time of purchase. The equpment will have no salvage value ot the end of the project's fouryear life. Yeatman 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 (Riv) would be under the new tar 19 . Which of the following most dosely approximates what the project's net present valve (NpV) would be under the new tax law? andwer to twe decimal places and choose the value that most closely matches your answer.) 577,34159 195,685,69 9116,022.53 587,01712 Which of the of the foliowing most closely approximates whst the project's NPV would be when using straight-line depreciation? (Hint: Round your final arswer to two decimal places and choose the value that most closely matches your answer.) 590,76.5.59 $119,454:68 395,563,74 1109,698,30 Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project if Yeatman turns it down. Which of the following most closely approximates how much Yeatman should reduce the fNpV of this project, assuming it is discovered that this project would reduce one of its division's net after-tax cash flows by $500 for each year of the fouryear project? (Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) 51,163,42 $930.73 31,706.34 11,551,22 The project wal requine on intial investment of $20,000, but the project wilt aiso be using a company-owned truck that is not currently being used. This truck couid be sold for $14,000, after taxes, if the project is rejected. What sheuld Yeatman do to take this information ineo account? Increase the ampunt of the initial investment by 114,000 . The compary does not need to do any? ing with the volue of the thuck because the truck is a sunk cost. Increase the Nev of the project by 514,000