Firm E must choose between two business opportunities. Opportunity $1$ will generate an $$11,200$ deductible loss in year $0,$$$7,000$

taxable income in year $1,$ and $$28,000$ taxable income in year $2.$ Opportunity $2$ will generate $$8,000$ taxable income in year $0$ and

$$7,000$ 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 pppendix A and $Appendi{x}_B{?}_{?}.$

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$\text{'}$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$\text{'}$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?

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.