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the other option below bonus for the last one is straight line Part 4 of the question (couldnt fit on photo) 4: No other firm

the other option below bonus for the last one is straight line image text in transcribed
Part 4 of the question (couldnt fit on photo)
4: No other firm would take on this project if McPhan turns it down. Which of the following most close the approximates, how much McPhan should reduce the NPV of this project, assuming it is discovered that this project would reduce one of its divisions, net after tax cash flows by $400 for each year of the four-year project?
a)$1,054.83
b)$1,240.98
c)$1,365.08
d) $744.59
Part 5 of the question (couldnt fit on photo)
5: The project require an initial investment of $15,000, but the project will also be using a company on the truck that is not currently being used. This truck could be sold for $14,000, after taxes, at the project is rejected. What should McFann do to take this information into account?
a) Increase the NPV of the project by $14,000
b) The company does not need to do anyrhing with the value of the truck because the truck is a sunk cost.
c) Increase the amount of the initial investment by $14,000
image text in transcribed
This project will require an investment of 515,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t=0, so it will be fully depreciated at the time of purchase. The equ pment will have no salvage value at the end of the project's four-year life. McFann pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be under the new tax law. Which of the following most closely 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 choose the value that most closely matches your answer.) $22,856.70$27,428.04$26,285.20$18,285.36 Which of the of the following most closely approximates what the project's NPV would be when using straight-line depreciation? (Hint: Round your final answer to two decimal places and choose the value that most closely matehes your answer.) $22,015.25$27,519.06$20,914,49$25,317.54 Using the depreciation method will result in the highest NPV for the project. No other ff on this project if McFann turns it down. Which of the following most closely approximates how much McFann should reduce No other firm would take on this project if McFann turns it down. Which of the following most closely approximates how much McFann should reduce the NPV of this project, assuming it is discovered that this project would reduce one of its division's net after-tax cash flows by $400 for each year of the four-year project? (Hint: Round your final answer to two decimal places and choose the value that most ciosely matches your answer.) $1,054.83$1,240.98$1,365.08$744.59 The project will require an initial investment of $15,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $14,000, after taxes, if the project is rejected, What should McFann do to take this information into account? Increase the NPV of the project by $14,000. The company does not need to do anything with the value of the truck because the truck is a sank cost. Increase the amount of the initial investment by $14,000

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