Firm E must choose between two business opportunities. Opportunity $1$ will generate an $$10,720$ deductible loss in year $0,$ $$6,700$ taxable income in year $1,$ and $$26,800$ taxable income in year $2.$ Opportunity $2$ will generate $$7,700$ taxable income in year $0$ and $$6,700$ taxable income in years $1$ and $2.$ The income and loss reflect before$-$tax cash inflow and outflow. Firm E uses a $5$ percent discount rate and has a $40$ percent marginal tax rate over the three$-$year period. Use Appendix A and Appendix B$.$

Required:

a$1.$ Complete the tables below to calculate NPV$.$

a$2.$ Which opportunity should Firm E choose?

b$1.$ Complete the tables below to calculate NPV$.$ Assume Firm E$$s marginal tax rate over the three$-$year period is $15$ percent.

b$2.$ Which opportunity should Firm E choose?

c$1.$ Complete the tables below to calculate NPV$.$ Assume Firm E$$s marginal tax rate is $40$ percent in year $0$ but only $15$ percent in years $1$ and $2.$

c$2.$ Which opportunity should Firm E choose?