Firm D is considering investing $400,000 cash in a three-year project with the following cash flows. Use Appendix A and Appendix B. Investment/return of investment Year 0 $ (400,000) Year 1 $ 0 Year 2 $ 400,000 Revenues Expenses Before-tax net cash flow 80,000 (25,000) 65,000 (25,000) 35,000 (10,000) $ (345,000) $ 40,000 $ 425,000 Required: a1. The revenue is taxable, the expenses are deductible, and the marginal tax rate is 15 percent. Use a 10 percent discount rate to compute NPV. a2. Should firm D make the investment? b1. The revenue is taxable, the expenses are deductible, and the marginal tax rate is 40 percent. Use a 10 percent discount rate to compute NPV. b2. Should firm D make the investment? c1. The revenue is taxable, only one-half of the expenses are deductible, and the marginal tax rate is 15 percent. Use a 10 percent discount rate to compute NPV. c2. Should firm D make the investment? d1. Firm D can deduct the expenses in the year paid (against other sources of income) but can defer recognizing the $180,000 total income until year 2. (It will collect the revenues as indicated in years 0, 1, and 2 so that before-tax cash flows don't change.) The marginal tax rate is 40 percent. Use a 10 percent discount rate to compute NPV. d2. Should firm D make the investment?