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1.)The table below summarizes the expected impacts of a potential investment project. Complete the table by entering the taxable income and taxes for years 1

1.)The table below summarizes the expected impacts of a potential investment project.

Complete the table by entering the taxable income and taxes for years 1 through 5, and NATCF values for years 0 through 5. Use a marginal tax rate of 25%.

Make sure you complete the entire table - you may need to scroll to the right to see all columns.

Year Initial Investment Inflows Outflows Depreciation Total Loan Payment Loan Interest Taxable Income Taxes NATCF
0 25,000
1 30,000 2,000 15,000 18,500 2,500
2 30,000 2,000 15,000 18,500 1,700
3 30,000 2,000 15,000 18,500 900
4 30,000 2,000 15,000
5 35,000 6,000

2.)The NATCFs for a potential investment are provided below. Using a discount rate of 14%, enter the present values for each natcf and calculate the NPV for the investment. Round each value to the nearest dollar.

Year NATCF Present Value (PV)
0 -30,000
1 8,000
2 8,000
3 10,000
4 10,000
5 15,000
NPV =

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