. Fool Proof Software is considering an expansion project having life for four years. The proposed project has the following features: Initial cost of the equipment is $200,000, with shipping cost $10,000 and installation cost of $30,000. The equipment will depreciate over 4 years using MACRS at the following rates (33%, 45%, 15%, and 7%) Inventories will increase by $25,000, and accounts payable will rise by $5,000 The company will sell 120,000 units per year with a price of $2/unit. The company's total operating cost will equal $120,000 each year, plus research and development costs $30,000 each year. The project salvage valve is $25,000 The company's tax rate is 40%. The project's WACC is 10%. . 2. The depreciation expenses for the four years are: O Y1=$79,200 Y2=$108,000 Y3=$36,000 Y4=$16,800 O Y1=$66,000 Y2=$90,000 Y3=$30,000 Y4=$14,000 O Y1=$66,000 Y2=$29,700 Y3=$4,455 Y4=$312 O Y1=$85,800 Y2=117,000 Y3=$39,000 Y4=$18,200 None of the above