12.Suppose a company is faced with expected losses of $9 million. $7 million will be paid at the end of year 1, and $2 million will be paid at the end of year 2. The tax rate for the firm is 35% and the appropriate discount rate is 8%.

Show the expected tax benefit for the firm if it is not an insurance firm.

Group of answer choices

$0.87 million

$2.87 million

$1.87 million

$3.87 million

13.

Suppose a company is faced with expected losses of $9 million. $7 million will be paid at the end of year 1, and $2 million will be paid at the end of year 2. The tax rate for the firm is 35% and the appropriate discount rate is 8%.

Show the expected tax benefit for the firm if it were an insurance firm.

Group of answer choices

$0.91million

$1.91 million

$2.91 million

$3.91 million

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