Question 24 1 pts The next two questions pertain to the problem below. A company is considering a new 3 ycar 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 this fixed asset for $500,000 before tax. The company has a policy of not subtracting any salvage value from the cost of the fixed asset in determining depreciation expense. The company has a tax rate of 35% and its required rate of return for this project is 12% An extensive marketing and research study completed 3 years ago cost the company $400,000. The study concluded that the company should not pursue the project. 24. What is the Year 3 Annual Cash Flow? Less than $2.200.000 O Between $2.200,000 and $2.300,000 Between $2,300,000 and $2.400,000 Between $2,400,000 and $2,500,000 o Between $2,500,000 and $2,600,000 Between $2.600,000 and $2.700.000 D Question 25 1 pts 25. Should the company make the investment? No because the NPV is less than 0 Yes because the NPV is between $1 and $20,000 O Yes because the NPV is between $20,000 and $40.000 O Yes because the NPV is between $40,000 and $60.000 Yes because the NPV is between $60,000 and $10000 Yes because the NPV is greater than $60.000