Echo Inc., which has a 21 percent U.S. tax rate, plans to expand its business into Country J. It could open a branch office, or it could create a foreign subsidiary in Country J. The branch office would generate $5,000,000 income in year 0. The foreign subsidiary would incur incremental legal costs and, as a result, would generate only $4,750,000 income in year 0. This income would be taxed at Country J's 15 percent corporate rate. Any repatriation of the subsidiary's earnings would qualify for the 100 percent dividends- received deduction. a. Assume none the subsidiary's earnings would be considered GILTI or subpart F income, calculate the NPV of the Year O after-tax foreign source income from opening a branch office or forming a foreign subsidiary. b. Should Echo open the branch office or form the subsidiary to maximize year O after-tax foreign earnings? Complete this question by entering your answers in the tabs below, Required A Required B Assume none the subsidiary's earnings would be considered GILTI or subpart F income, calculate the NPV of the Year 0 after- tax foreign source income from opening a branch office or forming a foreign subsidiary. After-Tax Foreign Source Income Opening a branch office $ 3,950,000 Forming a subsidiary