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8. (LO 14.2) A firm's discount rate is 15 percent. Suppose annual revenue starts at $50,000; annual expenses start at $20,400; and both will grow

8. (LO 14.2) A firm's discount rate is 15 percent. Suppose annual revenue starts at $50,000; annual expenses start at $20,400; and both will grow at a rate of 5 percent from year 2 to year 15 . The firm's tax rate is 40 percent. What is the present value of operating cash flows for all 15 years? a. $120,855 b. $115,635 c. $132,225 d. $109,485

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