Year 1 Year 2 Year 3 Year 4 3,500 4,000 4,200 4,250 $38.50 $39.88 $40.15 $41.55 Unit sales Sales price Variable cost per unit Fixed operating costs except depreciation Accelerated depreciation rate Fued operating cests exept oapecation 37,000 $37.5805 123.67 23.87 $37,000 $37,500 $38,120 $39,560 33% 45% 15% 7% This project will require an investment of $10,000 in nevw equipment. The equipment wil have no salvage value at the end of the project's four-year ide. Yeatman pays a costant tax rate of 40%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation O $55,756 O $46,463 O $37,170 O $41,817 Now determine what the project's NPV would be when using straight-line depreciation. L Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project if 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 ater-tax cash flows by $300 for each year of the four-year project? $931 $559 O $1,024 O $698 Type here to search 2 23 4 6