Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast and other information provided below: Year 0 Revenue Cost of Goods Sold Year 1 $830,000 - 315,000 Year 2 $830,000 - 315,000 Year 3 $830,000 - 315,000 Gross Profit Selling, General, & Admin (SG&A) Depreciation 515,000 - 110,000 - 180,000 515,000 - 110,000 - 180,000 515,000 - 110,000 - 180,000 EBIT Income Tax (21%) 225,000 - 47,250 225,000 -47,250 225,000 - 47,250 Incremental Earnings 177,750 177,750 177,750 Capital Expenditures 540,000 In addition to the $540,000 in capital expenditures, the project will require an immediate (T=0) increase in net working capital of $12,000. This level of NWC will be maintained for the life of the project and fully recovered at the end of Year 3. Question A: If Oswego Industries uses a cost of capital of 12%, what is the NPV of this project? O A. $315,796 B. $867,796 C. $322,713 OD. $533,250 Question B: If Oswego Industries, instead of using straight-line depreciation, uses an accelerated depreciation methodology when evaluating potential investments, what will be the effect on the calculated NPV of the project described above? A. If an accelerated depreciation methodology is used, the calculated NPV would INCREASE. B. If an accelerated depreciation methodology is used, the calculated NPV would DECREASE. OC. If an accelerated depreciation methodology is used, the calculated NPV would be UNCHANGED