Fox Co. is considering an investment that will have the following seles, variable costs, and fixed operating costs: Year 3 Year 4 Year 1 4,200 Unit sales Year 2 4,100 $30.00 4,300 $30.31 $29.82 $12.15 4,400 $33.19 $14.55 $13.45 $14.02 Sales price Variable cost per unit Fixed operating costs except depreciation Accelerated depreciation rate $41,000 33% 541,670 45% $41,890 15% $40,100 7% This project will require an investment of $10,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Fox pays a constant tax rate of 40%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your answer to the nearest whole dollar.) $60,833 $63,478 $52,898 $42,318 Now determine what the project's NPV would be when using straight-line depreciation. (Note: Round your answer to the nearest whole dollar.) $65,909 depreciation method will result in the highest NPV for the project. $68,545 In would take on this project if Fox turns it down. How much should Fox reduce the NPV of this project if it discovered that this project $50,091 e one of its division's net after-tax cash flows by $300 for each year of the four-year project? (Note: Round your answer to the nearest $52,727) The depreciation method will result in the highest NPV for the project. No OP straight-line take on this project if Fox turns it down. How much should Fox reduce the NPV of this project if it discovered that this project would accelerated its division's net after-tax cash flows by $300 for each year of the four-year project? (Note: Round your answer to the nearest wholm $559 $1,024 $931 $791 The project will require an initial Investment of $10,000, but the project will also be using a company-owned truck that is not currently being used, This truck could be sold for $12,000, after taxes, if the project is rejected. What should Fox do to take this information into account? Increase the amount of the initial investment by $12,000. The company does not need to do anything with the value of the truck because the truck is a sunk cost. Increase the NPV of the project by $12,000. Grade It Now Save & Continue Continue without saving