McFann Co. is considering an investment that will have the following sales, variable costs, and ll Year 1 Year 2Year 3. Year 4 5,500 5,200 5,700 5,820 $42.57 $43.55 $44.76 $46.79 $22.83 $22.97$23.45 $23.87 Fixed operating costs except depreciation $66,750 $68,950 $69,690 $68,900 796 Unit sales Sales price Variable cost per unit Accelerated depreciation rate 33% 45% 15% 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 at ould be when using accelerated depreciation. the end of the project's four-year life. McFann 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. $65,279 O $83,412 $87,038 O $72,532 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 No other firm would take on this project if McFann turns it down. How much should McFann 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? O $1,241 O $1,365 O $1,055 O $745