Firm D is considering investing $$572,000$ cash in a three$-$year project with the following cash flows. Use

Appendix A and Appendix B$.$

Required:

a$1.$ 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 $$257,200$ 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?