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please find the NPV, the teo fill in the blanks and the last multiple choice question please. thanks!! Consider the case of McFann Co.: MCFann
please find the NPV, the teo fill in the blanks and the last multiple choice question please. thanks!!
Consider the case of McFann Co.: MCFann Co, is considering an investment that will have the following sales, variable costs, and fixed operating costs: 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 Ife. McFann pays a constant tax rate of 40%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation. Desermine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your intermediate calculations to the nearest whole number.) $32,735 $41,828 $43,646 $36,372 Now determine what the project's NPV would be when using straight-line depreciation. Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project if McFann turns it down. How much should McFann 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 $700 for each year of the four-year project? $1,629 $2,389 $1,846 $2,172 Step by Step Solution
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