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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

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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 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 prent would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law. $60,329$80,438$67,032$77,087 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 project if Fox turns it down. How much should Fox reduce the NPV of this project if would reduce one of its division's net after-tax cash flows by $300 for each year of the four-year project? $1,024$931$698 $791 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 $9,000, after taxes, if the project is rejected. What should Fox 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 $9,000. Increase the amount of the initial investment by $9,000

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