Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0 What is the effect on the NPV of the restructured transaction, if the firm could restructure the transaction in a way that doesn't change before-tax cash flow but results in no taxable income in year 0, $50,000 taxable income in year 1, and the remaining $50,000 taxable income in year 2? Assume a 6 percent discount rate and a 34 percent marginal tax rate for the first year and in year 2 increases to 42 percent. Use Appendix A and Appendix B. (Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.) Restructured transaction Answer is complete but not entirely correct Year 0 Year 1 Year 2 100,000 V Before-tax cash flow 6,000 X 3,000X (21,000) (17,000) Tax cost Net cash flow 100,000 (11,000) (18,000) 0.943 0.890 Discount factor (6%) (10,373) (16,020) Present value 100,000 NPV 6,000 X Answer is complete but not entirely correct V 4,496X Decrease in NPV