Company Y began business in Feb 2012 ,by the end of the calendar year , it had biled it is clients for 3.5 million of services and had incurred $ 800,000 of operation expenses .As of december 31 ,it had collected $ 2.9 million of its billings and had paid $ 670,000 of its expenses . it expects to collect the remaining outstanding bills and pay the remaining expenses by March 2013 , Company Y adopted a caleander year for fedrel tax purpose .It may use either the cash method or the accrual method of accounting on its first tax return , and has asked you to quantify the value of using the cash method for the first year .In doing so ,assume company Y uses 7 % discount rate to compute NPV