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Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate over the three-year period is 15 percent. Note: Cash outflows should be
Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate over the three-year period is 15 percent. Note: Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Which opportunity should Firm E choose? Which opportunity should Firm E choose? Firm E must choose between two business opportunities. Opportunity 1 will generate an $15,520 deductible loss in year 0,$9,700 taxable income in year 1 , and $38,800 taxable income in year 2 . Opportunity 2 will generate $10,700 taxable income in year 0 and $9,700 taxable income in years 1 and 2 . The income and loss reflect before-tax cash inflow and outflow. Firm E uses a 5 percent discount rate and has a 40 percent marginal tax rate over the three-year period. Use Appendix A and Appendix B. Required: a1. Complete the tables below to calculate NPV. a2. Which opportunity should Firm E choose? b1. Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate over the three-year period is 15 percent. b2. Which opportunity should Firm E choose? c1. Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate is 40 percent in year 0 but only 15 percent in years 1 and 2. c2. Which opportunity should Firm E choose? Complete the tables below to calculate NPV. Note: Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Which opportunity should Firm E choose? Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate is 40 percent in year 0 but only 15 percent in years 1 and 2 . Note: Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount
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