Question 10 1 pts The next two questions pertain to the problem below: A company is considering a new 3 year expansion project that requires an initial fixed asset investment of $4,500,000. The fixed asset will be fully depreciated straight line over 3 years. The new project will generate $2,600,000 in new annual sales with corresponding new variable expenses of $600,000 annually. The project requires an initial investment in net working capital of $300,000. At the end of the 3 year period, the company will sell the fixed asset for $500,000. The company's policy is not to subtract the salvage value from the original fixed asset cost for depreciation purposes. The company's tax rate is 35% and its required rate of return for this project is 12%. An extensive marketing and research study that cost the company $400,000 was completed 3 years ago and concluded that the project should not be pursued. 10. What is the annual cash flow in year 3? Less than $2,200,000 Between $2,200,000 - $2,300,000 Between $2,300,000 - $2.400,000 Between $2,400,000 - $2,500,0001 Between $2,500,000 - $2,600,000 Greater than $2,600,000 Question 11 1 pts 11. Should the company make the investment? No because the NPV is less than 0 Yes because the NPV is between $1 - $20,000 Yes because the NPV is between $20,000 - $40,000 O Yes because the NPV is between $40,000 - $60,000 Yes because the NPV is between $60,000 - $80,000 Yes because the NPV is greater than $80,000