10 Problem 04-24 (Algo) [LO 4-6, 4-7] 10 points eBook Firm L has $570,000 to invest and is considering two alternatives. Investment A would pay 6 percent ($34,200 annual before-tax cash flow). Investment B would pay 4.8 percent ($27,360 annual before-tax cash flow). The return on Investment A is taxable, while the return on Investment B is tax exempt. Firm L forecasts that its 21 percent marginal tax rate will be stable for the foreseeable future. Required: a. Compute the explicit tax and implicit tax that Firm L will pay with respect to Investment A and Investment B. b1. What is the annual after-tax cash flow for Investment A? b2. What is the annual after-tax cash flow for Investment B? b3. Which investment results in the greater annual after-tax cash flow? Print References Complete this question by entering your answers in the tabs below. Req A Req B1 and B2 Req B3 Compute the explicit tax and implicit tax that Firm L will pay with respect to Investment A and Investment B. Explicit tax Implicit tax Investment A Investment B < Req A Req B1 and B2 > Req A Req B1 and B2 Req B3 b1. What is the annual after-tax cash flow for Investment A? b2. What is the annual after-tax cash flow for Investment B? b1. Annual after-tax cash flow for Investment A b2. Annual after-tax cash flow for Investment B Amount < Req A Req B3 > Which investment results in the greater annual after-tax cash flow? Investment A Investment B < Req B1 and B2 Req B3