Question: please ahow the work on excel thank you Attempts Average/5 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of

please ahow the work on excel
thank you
please ahow the work on excel thank you Attempts Average/5 3. Analysis
of an expansion project Companies invest in expansion projects with the expectation
of increasing the earnings of its business. Consider the case of Yeatman

Attempts Average/5 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Yeatman Co.: Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 4 Unit sales Sales price Variable cost per unit 5,120 4,800 $22.33 $9.45 Year 3 5,000 $23.85 5,100 $23.45 $24.45 $11.95 $12.00 Fixed operating costs $10.85 $33,450 $32,500 $34,950 $34,875 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 -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 not present value (NPV) would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law. $57,054 ORA Ch 12- Assignment - Cash Flow Estimation and Risk Analysis Valve () WOUIO De under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law. $57,054 $38,036 $54,677 $47,545 Now determine what the project's NPV would be when using straight-line depreciation. $46,142 Using the depreciation method will result in the highest NPV for the project. No other fimm would take on this project 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 after-tax cash flows by s600 for each year of the four-year project? $1,117 $2,047 $1,861 $1,582 The project will require an initial Investment of $25,000, but the project will also be using a company owned truck that is not currently being used. This truck could be sold for $4,000, after taxes, if the project is rejected. What should Yeatman 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 amount of the initial investment by $4,000 Increase the NPV of the project by $4,000. $38,036 $54,677 $47,545 Now determine what the project's NPV would be when using straight-line depreciation. $46,142 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 after-tax cash flows by $600 for each year of the four-year project? $1,117 $2,047 $1,861 $1,582 The project will require an initial investment of $25,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $4,000, after taxes, if the project is rejected. What should Yeatman 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 amount of the initial investment by 54,000 Increase the NPV of the project by $4,000 Grade It Now Save & Continue Continue without in

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