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please solve all 3. Analysis of an expansion project companies imvest in expansion projects with the expectasion of increasing the earnings of its business. Consider

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3. Analysis of an expansion project companies imvest in expansion projects with the expectasion of increasing the earnings of its business. Consider the case of Fox Ca: Fox CO. is considering an inwestment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $15,000 in new equipment. Under the new tax law, the equipmeat is eligible for 100% bonus deprecation at t=0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project's four-year life. Fox "brys a conitant tax fole or 25%, and it has o weghted average cost of capital (WACC) of 11%. Determine what the project's net present value (Npv) would be under the new tox uw. Which of the foliowing most clasely approximates what the project's net present value (NPV) would be under the new tax law?(Hint: Round your final answer to two decimal places and choote the value that most closely motches your answer.) Thas project wil require an invetiment of 515,000 in new equipment. Under the new tax law, the equipment is eligbie for 100% bonyl deprecation at nould on under the new tax low. moner to two decimal places and choose the value that inont clolely matches your-antswer.) 126,255.20 122,856.70 430,57t of finsi anpaer to two docomal niaces and choose the value that most ciosely matches your answer) 122,01575 47,51908 178,319.54 490,91449 uting the depreciation method will result in the fighes NPV for the progect. Using the depegcistian method will result in the highest NPV for the project. No osher ? in this project if Fox turns it down. Which of the following most closely approximates how much Fox should reduce the NPV of thispre Iis 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 proje if your firal answer to two decimal places and choose the value that most closely matches your answer.) 11,551:22 31,31854 5,163,42 31,70634 The project will require an initsal investunent of $15,000, but the project wit also be using a company-owned truck thet is not currently being used. This truck could be sold for $18,000, after taxes, if the project is rejected. What should Fox do to take this information into account? Increase the amount of the inital imvestment by $18,000. 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 $18,000

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