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Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of

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Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $25,000 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 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 net present value (NPV) would be under the new tax law. Which of the following most closely opproximates what the project's net present value (NPV) would be under the new tax lawi(hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) $13,821.03 518,428,04 $17,660.20 $15,356.70 Which of the of the following most closely approwimates whut the profect's NFW would be when using straight-line depreclation? (Hint: Round your final answer to two decimal places and choose the value that most closely matches your answer.) $17,442.84 513,256.56 $13,954.27 $16,047,41 Using the depreciation method will result in the highest NPV for the profect. No other firm would take on this project if Yeatman turns it down, Which of the foliowing most closely appreximates how much yeatman should reduce the NPV of this project, assuming it is discovered that this project would reduce ene of its dvision's net after-tax cash flows by $300 for each year of the four-year project? (Kint: Round your final arweer to two decimal places and choose the value that most dosery matches your answer.) $1,02380 $598 os s930.73 5791:12 Yeatman spent $2,500 on a marketing study to bstimate the number of units that it can sell each year, What should Yeatman do to take this information inte account? Increase the NPV of the project $2,500. Increase the amount of the initiaf investment by $2,500

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