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McFann Co. s considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of

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McFann Co. s considering an investment that will have the following sales, variable costs, and fixed operating costs: 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. 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. Determine what the project's net present value (NPV) would be when using accelerated depreciation. 543, 099 534, 479 538, 789 549, 564 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 disc this project would reduce one of its division's net after-tax cash flows by $400 for each year of the four-year project? 51, 241 51, 055 5931 5745 The project will require an initial investment of $15,000, but the project will also be using a company-owned truck that is not curre used. This truck could be sold for $12,000, after taxes, f the project is rejected. What should McFann do to take this information ir Increase the NPV of the project by 512,000. The company does not need to do anything with the value of the truck because the truck is a sunk cost. Increase the amount of the initial investment by 512,000

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