Can you give me a step by step solution to this problem and an explanation? I keep getting NPV = $1,935 for investment 1 and NPV = $4,293.75 for investment 2 but the correct answers are NPV = $1,886 for investment 1 and NPV = $4,244 for investment 2.

Lorelei has $100,000 to invest, and is considering two alternative investments: (1) tax-exempt municipal bonds paying 5 percent annual interest, or (2) corporate stock expected to increase in value. Lorelei expects to hold either investment for two years. At the end of the two years, she predicts that the corporate stock will be worth $115,000. Lorelei's marginal tax rate on ordinary income is 35 percent; she will also qualify for the reduced capital gains rate of 15 percent if she makes the stock investment. Explain to Lorelei which investment option is superior. Support your answer by calculating the net present value of after-tax cash flows from each alternative, using an 4 percent discount rate. Assume the investment is made in year 0, interest on investment 1 is received in years 1 and 2, and that the investments will be sold in year 2. a. 29200 Which tax planning variables (entity, time period, character, jurisdiction) impact your recommendation? Briefly explain your answer. b. .0 How would your answer to part (a) change if the taxpayer were Lorelei Inc., a C corporation with a 21 percent marginal tax rate