Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast and other information provided below: Revenue Cost of Goods Sold Gross Profit Selling, General, & Admin (SG&A) Depreciation EBIT Income Tax (21%) Incremental Earnings Capital Expenditures Year 0 Year 11 $800,000 -300,000 Year 2 $800,000 Year 3 $800,000 -300,000 -300,000 500,000 -110,000 500,000 -110,000 500,000 -110,000 -160,000 -160,000 -160,000 230,000 -40,300 230,000 230,000 -48,300 -48,300 181,700 181,700 181,700 480,000 In addition to the $480,000 in capital expenditures, the project will require an immediate (T0) 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? OA $545,100 OB. $337,247 OC. $829,247 OD. $344,164 Question B: 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 DECREASE OB. If an accelerated depreciation methodology is used, the calculated NPV would INCREASE OC. If an accelerated depreciation methodology is used, the calculated NPV would be UNCHANGED