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An individual bought an investment that will generate the following cash flows over a three- year period. Taxable revenue Year O Year 1 Year
An individual bought an investment that will generate the following cash flows over a three- year period. Taxable revenue Year O Year 1 Year 2 42,000 56,000 80,000 Nontaxable revenue 6,000 8,500 9,000 Deductible expenses (20,000) (20,000 ) (25,000) If the investor's marginal tax rate over the three-year period is 40% and she uses a 6% discount rate, what is the NPV of the transaction (round the final answer to the nearest whole dollar)? O $94,129 O $84,964 O $62,373 O $51,373 None of the above.
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