please answer all componentes of the one problem posted
Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Black Sheep Broadcasting Black Sheep Broadcasting is considering an investment that will have the following sales, variable costs, and faced operating costs: Year 2 Year 3 Year 4 3,250 3,300 3,400 $17.33 $17.45 $18.24 Year 1 Unit sales (units) 3,000 Sales price $17.25 Variable cost per unit $8.88 Fised operating costs except depreciation $12.500 Accelerated depreciation rate 3396 $8.92 $9.03 $9.06 $13,250 $13,000 $13,220 459 1596 796 This project will require an investment of $15,000 in new equipment. The equipment will have no salvage value at the end of the project's four year life. Black Sheep Broadcasting pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated depreciation, the project's net present value (NPV) is including the project's not present value-to the nearest whole dollar) (Hint: Round each element in your computation- When using straight-line depreciation, the project's NPV is project's niet present value to the nearest whole dollar) (Hint: Again, round each element in your computation-Including the Using the depreciation method will result in the greater NPV for the project. No other firm would take on this project of Black Sheep Broadcasting tums it down. How much should Black Sheep Broadcasting 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 $500 for each year of the four-year project? O 5931 O 51.551 51.706 51318 N The project will require an initial investment of $15,000, but the project will also be using a company-owned truck that is not currently being used, This truck could be sold for 512.000, after taxes, if the project is rejected. What should Black Sheep Broadcasting de to take this information into account? Increase the amount of the initial investment by $12.000, The company does not need to do anything with the value of the truck because the truck is a sunk cost. Increase the NPV of the project by S12,000