Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast and other information provided below: Year o Year 1 Year 2 Year 3 Revenue $840.000 $840,000 $840,000 Cost of Goods Sold - 320,000 -320,000 - 320,000 Gross Profit 520,000 520,000 520,000 Selling, General, & Admin (SG&A) - 110,000 - 110,000 - 110,000 Depreciation - 150,000 - 150,000 - 150,000 EBIT 280,000 200,000 260,000 Income Tax (21%) -54,600 -54,600 - 54,000 Incremental Earnings 205,400 205,400 205,400 Capital Expenditures 450,000 In addition to the $450,000 in capital expenditures, the project will require an immediate (TO) increase in not working capital of $16,000. 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 11%, what is the NPV of this project? O A $880,195 OB. $422,797 O C. $616,200 OD. $414,195 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 abovo? OA. If an accelerated depreciation methodology is used, the calculated NPV would INCREASE B. If an accelerated depreciation methodology is used the calculated NPV would be UNCHANGED OC. If an accelerated depreciation methodology is used the calculated NPV would DECREASE