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Company N will receive $120,000 of taxable revenue from a client. Use Appendix A and Appendix B. Required: a. Compute the NPV of the
Company N will receive $120,000 of taxable revenue from a client. Use Appendix A and Appendix B. Required: a. Compute the NPV of the $120,000 assuming that Company N will receive $60,000 now (year O) and $60,000 in year 1. The company's marginal tax rate is 30 percent, and it uses a 6 percent discount rate. b. Compute the NPV of the $120,000 assuming that Company N will receive $60,000 in year 1 and $60,000 in year 2. The company's marginal tax rate is 40 percent, and it uses a 4 percent discount rate: c. Compute the NPV of the $120,000 assuming that Company N will receive $24,000 now (year 0) and $24,000 in years 1, 2, 3, and 4. The company's marginal tax rate is 10 percent, and it uses a 9 percent discount rate. Answer is com
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