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Complete this question by entering your answers in the tabs below. From the firm's perspective, is this proposal superior to its original offer ($82,500 annually
Complete this question by entering your answers in the tabs below. From the firm's perspective, is this proposal superior to its original offer ($82,500 annually for three years)? ssuming an 8 percent discount rate for both Firm B and Ms. All, compute the NPV of Ms. Ali's after-tax cash flow from the imployment contract and Firm B's after-tax cost of the employment contract. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all ther intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not n percentage. To reduce her tax cost, Ms. All requests that the salary payment for year 0 be increased to $142,500 and the salary payments for years 1 and 2 be reduced to $52,500. How would this revision in the timing of the payments change your NPV computation for both parties? Note: Deductions and Cash Outflows should be entered with a minus sjgn. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Firm B responds to Ms. Ali's request with a counterproposal. It will pay her $142,500 in year 0 but only $47,500 in years 1 and 2. Compute the NPV of Ms. Ali's after-tax cash flow. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Firm B wants to hire Ms. Ali to manage its advertising department. The firm offered Ms. Ali a three-year employment contract under which it will pay her an $82,500 annual salary in years 0,1 , and 2 . Ms. Ali's projected tax rate is 25 percent rate in year 0 and a 40 percent rate in years 1 and 2 . Firm B's tax rate for the three-year period is 34 percent. Use Appendix A and Appendix B. Required: a. Assuming an 8 percent discount rate for both Firm B and Ms. Ali, compute the NPV of Ms. Ali's after-tax cash flow from the employment contract and Firm B's after-tax cost of the employment contract. b. To reduce her tax cost, Ms. Ali requests that the salary payment for year 0 be increased to $142,500 and the salary payments for years 1 and 2 be reduced to $52,500. How would this revision in the timing of the payments change your NPV computation for both parties? c1. Firm B responds to Ms. Ali's request with a counterproposal. Firm B will pay Ms. Ali $142,500 in year o but only $47,500 in years 1 and 2. Compute the NPV of Firm B's after-tax cost under this proposal. c2. From the firm's perspective, is this proposal superior to its original offer ($82,500 annually for three years)? d1. Firm B responds to Ms. Ali's request with a counterproposal. It will pay her $142,500 in year 0 but only $47,500 in years 1 and 2 . Compute the NPV of Ms. Ali's after-tax cash flow. d2. Should Ms. Ali accept the original offer or the counterproposal? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Firm B responds to Ms. Ali's request with a counterproposal. Firm B will pay Ms. Ali $142,500 in year 0 but only $47,500 in years 1 and 2. Compute the NPV of Firm B's after-tax cost under this proposal. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Complete this question by entering your answers in the tabs below. Should Ms. Ali accept the original offer or the counterproposal? Complete this question by entering your answers in the tabs below. From the firm's perspective, is this proposal superior to its original offer ($82,500 annually for three years)? ssuming an 8 percent discount rate for both Firm B and Ms. All, compute the NPV of Ms. Ali's after-tax cash flow from the imployment contract and Firm B's after-tax cost of the employment contract. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all ther intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not n percentage. To reduce her tax cost, Ms. All requests that the salary payment for year 0 be increased to $142,500 and the salary payments for years 1 and 2 be reduced to $52,500. How would this revision in the timing of the payments change your NPV computation for both parties? Note: Deductions and Cash Outflows should be entered with a minus sjgn. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Firm B responds to Ms. Ali's request with a counterproposal. It will pay her $142,500 in year 0 but only $47,500 in years 1 and 2. Compute the NPV of Ms. Ali's after-tax cash flow. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Firm B wants to hire Ms. Ali to manage its advertising department. The firm offered Ms. Ali a three-year employment contract under which it will pay her an $82,500 annual salary in years 0,1 , and 2 . Ms. Ali's projected tax rate is 25 percent rate in year 0 and a 40 percent rate in years 1 and 2 . Firm B's tax rate for the three-year period is 34 percent. Use Appendix A and Appendix B. Required: a. Assuming an 8 percent discount rate for both Firm B and Ms. Ali, compute the NPV of Ms. Ali's after-tax cash flow from the employment contract and Firm B's after-tax cost of the employment contract. b. To reduce her tax cost, Ms. Ali requests that the salary payment for year 0 be increased to $142,500 and the salary payments for years 1 and 2 be reduced to $52,500. How would this revision in the timing of the payments change your NPV computation for both parties? c1. Firm B responds to Ms. Ali's request with a counterproposal. Firm B will pay Ms. Ali $142,500 in year o but only $47,500 in years 1 and 2. Compute the NPV of Firm B's after-tax cost under this proposal. c2. From the firm's perspective, is this proposal superior to its original offer ($82,500 annually for three years)? d1. Firm B responds to Ms. Ali's request with a counterproposal. It will pay her $142,500 in year 0 but only $47,500 in years 1 and 2 . Compute the NPV of Ms. Ali's after-tax cash flow. d2. Should Ms. Ali accept the original offer or the counterproposal? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Firm B responds to Ms. Ali's request with a counterproposal. Firm B will pay Ms. Ali $142,500 in year 0 but only $47,500 in years 1 and 2. Compute the NPV of Firm B's after-tax cost under this proposal. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Complete this question by entering your answers in the tabs below. Should Ms. Ali accept the original offer or the counterproposal
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