Unit sales (units) Sales price Variable cost per unit Fixed operating costs except depreciation Accelerated depreciation rate Year 1 3,500 $38.50 $22.34 $37,000 33% Year 2 4,000 $39.88 $22.85 $37,500 45% Year 3 4,200 $40.15 $23.67 $38,120 15% Year 4 4,250 $41.55 $23.87 $39,560 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-year life. Celestial Crane Cosmetics pays a constant tax rate of 40%, and it has a required rate of return of 11% (Hint: Round each element in your computation- When using accelerated depreciation, the project's net present value (NPV) is including the project's net present value-to the nearest whole dollar.) (Hint: Again, round each element in your computation-including the project's net present value-to the nearest whole dollar) Using the depreciation method will result in the greater NPV for the project, No other firm would take on this project if Celestial Crane Cosmetics turns it down. How much should Celestial Crane Cosmetics 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 $300 for each year of the four-year project? $1,024 $931 $559 5791