20 3 Problem 03-14 (Static) [LO 3-3] points Firm Q is about to engage in a transaction with the following cash flows over a three-year period. Use Appendix A and Appendix B Taxable revenue 04:42:28 Deductible expenses Nondeductible expenses Required: Year e $13,000 (3,900) (350) Year 1 $ 16,250 (6,000) (2,000) Year 2 $ 23,400 (8,100) eBook References If the firm's marginal tax rate over the three-year period is 30 percent and its discount rate is 6 percent, compute the NPV of the transaction. (Expenses and cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.) Year 0 Year 1 Year 2 Revenue Expenses S 13,000 $ (3,900) 16,250 $ 23,400 (6,000) (8,100) Tax cost (2,730) (3,075) (4,590) Net cash flow 6,370 $ 7,175 $ 10,710 Discount factor 0.943 0.890 Present value $ 6,370 $ 6,766 $ 9,532 NPV S 1