Year 1 Year 2 Year 3 Year 4 Unit sales 4,800 5,100 5,000 5,120 Sales price $22.33 $23.45 $23.85 $24.4 Variable cost per unit $9.45 $10.85 11.95 $12.00 Fixed operating costs except depreciation $32,500 $33,450 $34,950 $34,875 Accelerated depreciation rate 33% 45% 15% 7% This project will require an investment of $15,000 in new Determine what the project's net present value (NPV) equipment. The equipment will have no salvage value a would be when using accelerated depreciation the end of the project's four-year life. Fox pays a o $34,355 constant tax rate of 40%, and it has a weighted average $49,386 O cost of capital (WACC) of 11%. Determine what the O $42,944 project's net present value (NPV) would be when using O $51,533 accelerated depreciation. Now determine what the project's NPV would be when using straight-line depreciation. $53,360 Using the accelerated depreciation method will result in the highest NPV for the project. No other firm would take on this project if Fox turns it down. How much should Fox 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 $500 for each year of the four-year project? $931 O $1,318 O $1,706 O 1,551