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Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: pays a constant tax rate of 25%,
Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the projent would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law. $63,302 $66,054$49,541 $55,045 Now determine what the project's NPV would be when using straight-line depreciation. Using the depreciation method will result in the highest NPV for the project. project would reduce one of its division's net after-tax cash flows by $600 for each year of the four-year project? $2,047 $1,396$1,861$1,582 Garida spent $1,500 on a marketing study to estimate the number of units that it can sell each year. What should Garida do the the information into account? Increase the amount of the initial investment by $1,500. Increase the NPV of the project $1,500. 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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