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Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0 . How does

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Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0 . How does the NPV of the transaction change 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 21 percent marginal tax rate for the three-year period. Use Appendix A and Appendix B Required: o. Prepare a Original transaction b. Prepare a Restructured transaction. Complete this question by entering your answers in the tabs below. Prepare a Original transaction. Note: Cash outflows should be indicated by a minus sign. Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0 . How does the NPV of the transaction change 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 0,550,000 taxable income in year 1 , and the remaining $50,000 taxable income in year 2 ? Assume a 6 percent discount rate and a 21 percent marginal tax rate for the three-year period. Use Appendix A and Appendix. B. Required: o. Prepare a Original transaction. b. Prepare a Restructured transaction. Complete this question by entering your answers in the tabs below. Prepare a Restructured transaction. Notes Cash outflows should be indicated by a minus sign. Round discount factors to 3 decimal places. P Present Value of Annuity of S1

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