A project requires an initial investment of $$100,000$ and is expected to produce a cash inflow before tax of $$27,300$ per year for five

years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company $B$ pays

corporate taxes at a rate of $21\%$ and can claim $100\%$ bonus depreciation on the investment. Suppose the opportunity cost of capital is

$10\%.$ Ignore inflation.

a$.$ Calculate project NPV for each company.

b$.$ What is the IRR of the after$-$tax cash flows for each company?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Calculate project NPV for each company.

Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.