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I need help with the 3 parts not yet answered. thanks! Chapter 10 Assignment Companies invest in expansion projects with the expectation of increasing the

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I need help with the 3 parts not yet answered. thanks!

Chapter 10 Assignment Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Pheasant Pharmaceuticals: Pheasant Pharmaceuticals 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 (units) 3,000 3,250 3,300 3,400 Sales price $17.25 $17.33 $17.45 $18.24 Variable cost per unit $8.88 $8.92 $9.03 $9.06 Fixed operating costs except depreciation $12,500 $13,000 $13,220 $13,250 Accelerated depreciation rate 33% 45% 15% 7% 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. Pheasant Pharmaceuticals pays a constant tax rate of 40%, and it has a required rate of return of 11%. chapter 10 Assignment When using accelerated depreciation, the project's net present value (NPV) is including the project's net present value-to the nearest whole dollar.) (Hint: Round each element in your computation- $13,756 When using straight-line depreciation, the project's NPV is project's net present value-to the nearest whole dollar.) (Hi $15,476 round each element in your cohputation-including the $17,195 Using the accelerated depreciation method will result in the greater N $19,774 project. No other firm would take on this project if Pheasant Pharmaceuticals turns it down. How much should Pheasa Pharmaceuticals 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 $300 for each year of the four-year projec $ 559 $931 $791 $698 When using accelerated depreciation, the project's net present value (NPV) is including the project's net present value-to the nearest whole dollar.) (Hint: Round each element in your computation- When using straight-line depreciation, the project's NPV is project's net present value-to the nearest whole dollar.) (Hint: Again, round each element in your computation-including the $16,939 Using the accelerated depreciation method will res $19,480 reater NPV for the project. $16,092 No other firm would take on this project if Pheasant Pharm turns it down. How much should Pheasant Pharmaceuticals reduce the NPV of this project if it discovered that this project would reduce $21,174 vision's net after-tax cash flows by $300 for each year of the four-year project? $559 $931 O 5791 $698 The project will require an initial investment of $15,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $9,000, after taxes, if the project is rejected. What should Pheasant Pharmaceuticals do to take this information into account

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