NPV using depreciation.

Then with straight line depreciation.

Which results in higher NPV?

Any help with the last question is appreciated.

Fox 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 4,800 5,1005,0005,120 $22.33 $23.45 $23.85 $24.45 $9.45 $10.85 $11.95 $12.00 Fixed operating costs except depreciation $32,500 $33,450 $34,950 $34,875 7% Unit sales Sales price Variable cost per unit Aocelerated depreciation rate 33% 45% 15% This project will require an investment of $25,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Fox pays a costant tax rate of 40%, and it has 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. O $32,596 O $28,974 O $43,462 O $36,218 Now determine what the project's NPV would be when using straight-line depreciation. Using the deprecdation method will result in the highest NPV for the project No ather fimm wouid take on this project # Fox tursit down How majh shoud Fox reduce the NPV of this preject if t dycovered that this , should Fox reduce the NPV of this project if it discovered that this No other firm would take on this project if Fox turns it down. How m project would reduce one of its division's net ofter-tax cash flows by $300 for each year of the four-year project? O $698 O $559 O $931 O $1,024