Firm L has $640,000 to invest and is considering two alternatives. Investment A would pay 6 percent ($38,400 annual before-tax cash flow). Investment B would pay 4.8 percent ($30,720 annual before-tax cash flow). The return on Investment A is taxable, while the return on Investment B is tax exempt. Firm L forecasts that its 21 percent marginal tax rate will be stable for the foreseeable future. Required: a. Compute the explicit tax and implicit tax that Firm L will pay with respect to Investment A and Investment B. b-1. What is the annual after-tax cash flow for Investment A? b-2. What is the annual after-tax cash flow for Investment B? b-3. Which investment results in the greater annual after-tax cash flow? Complete this question by entering your answers in the tabs below. Req A Req B1 and B2 Req B3 Compute the explicit tax and implicit tax that Firm L will pay with respect to Investment A and Investment B. Investment A Investment B Explicit tax paid Implicit tax paid < Req A Req B1 and B2 >