A project requires an initial investment of $$100,000$ and is expected to produce a cash inflow before tax of $$26,000$ 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

$8\%.$ Ignore inflation.

a$.$ Calculate project NPV for each company.

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

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.

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

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.