Ch 12: Assignment Cash Flow Estimation and Risk Analysis Fox Co. is considering an investment that will have the following sales, vana C, and we operating costs Year 1 4,000 $22.33 Unt Sales Sales price Variable cost per un Fixed operating costs except depreciation Accelerated deprecation rate Year 2 5,100 $23.45 $10.05 $33,450 45% Year 3 5,000 $23.85 $11.95 $34,950 15% Year 4 5,120 $24.45 $12.00 $34,875 79 $9.45 $32,500 339 This project will require an investment of $20,000 in new equipment. The equipment will have no salvage value at the end of the project's four- vear life. Fox pays a constant 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. (Note: Round your answer to the nearest whole dolar) 347,497 $35,623 O $39,561 O. $31,665 Now determine what the project's NPV would be when using straight line depreciation. (Note: Round your answer to the nearest whole dollar) The depreciation method will cost in the highest Nov for the project. No other firm would take on this project Fox turns a down. How much should Fox reduce the NPV of this project it it discovered that this project would reduce one of its division's net after-tax cash flows by sso for each year of the four-year project? (Note: Round your answer to the nearest whole dollar) O 51,163 O $931 O $1,551