When using straight-line depreciation, the project's NPV is Using the depreciation method will result in the greater NPV for the project. No other firm would take on this project if Blue Uama Mining turns it down. How much should Blue Ulama Mining 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 $1,582 $2,047 $1,861 Blue Llama Mining spent $1,750,00 on a marketing study to estimate the number of units that it can sell each year. What shous Blue Uama Mining do to take this information into account? Increase the NPV of the project $1,750.00. Increase the amount of the initial investment by $1,750.00. The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. Assignment: Chapter 10 Project Cash Flows and Risk This project will require an investment of $10,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Blue Ulama Mining pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated depredation, the project's net present value (NPV) is When using straight-line depreciation, the project's NPV is Using the depredation method will result in the greater No other firm would take on this project if Blue Lama Mining turns it down. 11 $55,570 pould Blue Lama Mining reduce the NPV of this project if it discovered that this project would reduce one of its division's net after-tax casiniwsor 3600 for each year of the four-year project? $1,117 $1,582 $2,047 Assignment: Chapter 10 Project Cash Flows and Risk This project will require an imvestment of $10,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Blue Llama Mining pars a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated depredation, the project's net present value (NPV) is When using straight-line depreciation, the project's NPV is Using the No other firm would take on this project if Blue Lama Minil methed will re discovered that this project would reduce one of its divisio $1,117 $46,137 51,582 $2,047 Assignment: Chapter 10 Project Cash Flows and Risk This project will require an irvestment of $10,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Blue Lama Mining pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated depreciation, the project's net present value (NPV) is When using straight-line depredation, the project's NPV is Using the depreciation method will result in the oreater NPV for the project. No other f discovered in this project if Blue Uarma Mining turns it down. How much should Blue Llama Mining reduce the NPV of this project if it t would reduce one of its division's net after-tax cash flows by $600 for each year of the four-year project? $1,117 $1,582 $2,047 Blue Lama Mining is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $10,000 in new cquipment. The equipment wall have no salvage value at the end of the project's four-year life. Blue Lama Mining pays a constant tax rate of 40%, and it has a required rate of return of 11%. When using accelerated depredation, the project's net present value (NPV) is When using straight-line depreciation, the project's NPV is Using the depreciation method will result in the oreater NPV for the project. No other firm would take on this project if Blue Uama Mining turns it down. How much should Blue tlama Minirfy reduce the Npv of this project if it