Firm D is considering investing $400,000 cash in a three-year project with the following cash flows. Use Arpendix A and Anpendix. B. Investment/return of investment Revenues Expenses Before-tax net canh flow Year 0 $ (400,000) 80,000 (25,000) $ (345,000) Year $0 65,000 (25,000) $ 40,000 Year 2 $ 400,000 35,000 (10.000) $ 425,000 Required: 2-1. 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. a-2. Should firm D make the investment? b-1. 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 b-2. Should firm D make the investment? C-1. 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. c-2. Should firm D make the investment? d-1. 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. d-2. Should firm D make the investment? Complete this question by entering your answers in the tabs below. Req AI Reg A2 Reg 31 Reg 2 Reg C1 Reg C2 Reg 01 Reg D2 The revenue is taxablo, the expenses are deductible, and the marginal tax rate is 15 percent. Use a 10 percent discount rate to compute NPV. (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.) Year o Yeart Year 2 Taxable Revenue Deductions Taxable income (Tex/Tax Savings on income (187) Before-tax cashflow (Tax/Tax Savings Aller tax net cash flow Discount factor (10%) Present Value NPV $ Os 05 0 5 Os Os 0 Req A2 > c-1. 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. c-2. Should firm D make the investment? d-1. 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. d-2. Should firt D make the investment? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Reg 1 Reg C2 Reg Di Reg D2 Should firm D make the investment? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Reg Ci Reg C2 Reg D1 Reg D2 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. (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.) Year 0 Year 1 Year 2 Taxable Revenue Deductions Taxable income (Tax Tax Savings on Income (40%) Before-tax cashflow (Taxy Tax Savings After-tax net cash flow Discount Factor (10%) Present Value NPV 0 0 0 $ 0 $ 0 $ 0 c-1. 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. c-2. Should firm D make the investment? d-1. 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. d-2. Should firm D make the investment? Complete this question by entering your answers in the tabs below. Reg 2 Reqci Reg C2 Reg Di Reg D2 Reg A1 Reg A2 Reg 1 Should firm D make the investment? Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Req B1 Req B2 ReqC1 Reg C2 Reg D1 Reg D2 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. (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.) Year O Year 1 Year 2 Taxable Revenue Deductions Taxable income (Taxy Tax Savings on Income (15%) Before-tax cashflow (Tax Tax Savings After-tax net cash flow $ 0 $ 0$ 0 Discount factor (10%) Present Value $ 0 $ 0 s 0 NPV Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Reg 31 Re B2 Reg CI Reg C2 Reg Di Reg 02 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. (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.) Show less Year o Year 1 Year 2 Taxable Revenue Deductions Taxable income(loss) (Taxy Tax Savings on Income (40%) Before-tax cashflow (Taxy Tax Savings After-tax cashflow Discount factor (10%) Present Value $ 0$ OS 0 NPV 0 C-1. 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, c-2. Should firm D make the investment? d-1. Firm D can deduct the expenses in the year peld (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. d-2. Should firm D make the investment? Complete this question by entering your answers in the tabs below. Reg B2 Reg C1 Reg C2 Reg 01 Reg D2 Reg A1 Reg A2 Reg 1 Should firm D make the investment?