Firm E must choose between two business opportunities. Opportunity 1 will generate an $12,000 deductible loss in year 0, $7,500 taxable income in year 1, and $30,000 taxable income in year 2. Opportunity 2 will generate $8,500 taxable income in year 0 and $7,500 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: a1. Complete the tables below to calculate NPV. a2. Which opportunity should Firm E choose? b1. Complete the tables below to calculate NPV. Assume Firm Es marginal tax rate over the

Complete this question by entering your answers in the tabs below. Complete the tables below to calculate NPV. Note: Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount