Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs:

Year 1Year 2Year 3Year 4Unit sales4,8005,1005,0005,120Sales price$22.33$23.45$23.85$24.45Variable cost per unit$9.45$10.85$11.95$12.00Fixed operating costs except depreciation$32,500$33,450$34,950$34,875Accelerated depreciation rate33%45%15%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. Garida 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.

Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your intermediate calculations to the nearest whole number.)

Now determine what the project's NPV would be when using straight-line depreciation.?

Using the ( straight line or accelerated) depreciation method will result in the highest NPV for the project.?

No other firm would take on this project if Garida turns it down. How much should Garida reduce the NPV of this project if it discovered that this project would reduce one of its division's net after-tax cash flows by $400 for each year of the four-year project?