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Firm E must choose between two business opportunities. Opportunity 1 will generate an $14,880 deductible loss in year 0, $9,300 taxable income in year

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Firm E must choose between two business opportunities. Opportunity 1 will generate an $14,880 deductible loss in year 0, $9,300 taxable income in year 1, and $37,200 taxable income in year 2. Opportunity 2 will generate $10,300 taxable income in year O and $9,300 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 E's marginal tax rate over the three-year period is 15 percent. b2. Which opportunity should Firm E choose? c1. Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate is 40 percent in year O but only 15 percent in yea and 2 c2. Which opportunity should Firm E choose?

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