same question, different parts so please answer all.
Companies invest in expansion projects with the expectation of increasing the earnings of its business, Consider the case of Yeatman Co.: Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 4 Unit sales 4,250 Sales price Year 1 Year 2 3,500 4,000 $38.50 $39.88 $22.34 $22.85 $37,000 $37,500 Year 3 4,200 $40.15 $23.67 $38,120 $41.55 $23.87 Variable cost per unit Fbced operating costs $39,560 This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at -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. Yeatman pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's not present value (NPV) would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law, Determine what the project's net present value (NPV) would be under the new tax law. $53,087 $67,834 $58,986 O $47,189 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 projectif Yeatman turns it down. How much should Yeatman 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 $600 for each year of the four year project? O $1,396 $1,582 O $1,117 project would reduce one of its division's net after-tax cash flows by $600 for each year of the four year project? $1,396 $1,582 O $1.117 O $1,861 The project will require an initial investment of $10,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $12,000, after taxes, If the project is rejected. What should Yeatman do to take this information into account? 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 $12,000. Increase the amount of the initial investment by $12,000