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Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year

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Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit sales. 4,200 4,100 4,300 4,400 Sales price $29.82 $30.00 $30.3 $33.19 Variable cost per unit $12.15 $13.45 14.02 14.55 Fixed operating costs except depreciation $41,000 $41,670 $41,890 $40,100 Accelerated depreciation rate 33% 45% 15% 7% This project will require an investment of $25,000 in new Determine what the project's net present value (NPV) equipment. The equipment will have no salvage value a would be when using accelerated depreciation the end of the project's four-year life. Garida pays a $51,370 constant tax rate of 40%, and it has a weighted average O $42,808 cost of capital (WACC) of 11%. Determine what the O $34,246 project's net present value (NPV) would be when using $49,229 accelerated depreciation. Now determine what the project's NPV would be when using straight-line depreciation

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