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Fakon Freight is considering an investment that will have the following sales, variable costs, and fixed operating costs This project will require an investment of

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Fakon Freight 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. The equipment will have no salvage value at the end of the project's four-year life. Falcon Freight pays a constant tax rate of 40%, and it has a required rate of retuirn of 11%. When using accelerated depreciation, the project's net present value (NPV) is When using straight -line depreciation, the project's NPV is Using the depreciation method will result in the greater NPV for the project. No other firm would take on this project if falcon freight turns it down. How much should falcon freight reduce the Nir of this project if it discovered that this project would reduce one of its division's net after tax cash flows by $500 for each year of the (our-year project? $1,163 4931 51,551 $931 $1,551 $1,318 Falcon Freight spent $1,750.00 on a marketing study to estimate the number of units that it can sell each year. What should Falcon freight do to this information into account? Increase the amount of the initial investment by $1,750.00. increase the NPV of the project $1,750.00. The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost

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