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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
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 $600 for each year of the four-year project? O $1,117 O 396 O $2,047 $1,861 O The project will require an initial investment of $25,000, 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 McFann do to take this information into account? O The company does not need to do anything with the value of the truck because the truck is a sunk cost. O ncrease the amount of the initial investment by $9,000 Q ncrease the NPV of the project by $9,000
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