Firm Q is about to engage in a transaction with the following cash flows over a three-year period. Use Appendix A and Appendix B. Taxable revenue Deductible expenses Nondeductible expenses Year0 $14,400 (4,700) (635) Year 1 $16,400 (6,800) (2,100) Year 2 $ 30,900 (11,450) 0 If the firm's marginal tax rate over the three-year period is 30 percent and its discount rate is 6 percent, compute the NPV of the transaction. (Expenses and cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places and your intermediate calculations to the nearest whole dollar amount.) Year 0 Year 1 Year 2 Revenue Expenses Tax cost Net cash flow Discount factor Present value NPV Present Value of $1 Periods 3% 4% 5% 6% 7% 8% O VOU OWN 952 907 864 .823 .784 .746 .711 .971 943 915 .888 .863 .837 .813 .789 .766 744 .722 .701 .681 .661 .642 .623 .605 .587 962 .925 .889 .855 .822 .790 .760 .731 .703 .676 .650 .625 .601 .577 .555 .534 513 .494 475 .456 677 645 943 890 .840 .792 .747 .705 665 627 592 558 527 497 469 442 417 394 .371 350 331 312 .935 .873 .816 .763 .713 .666 .623 582 544 508 475 444 415 388 362 .339 317 917 842 .772 .708 .650 .596 547 .502 460 .422 .388 .356 614 .926 .857 .794 .735 .681 .630 -583 -540 500 .463 429 .397 .368 340 315 292 270 250 232 215 326 UD 585 557 530 -505 481 458 436 416 396 377 299 275 252 231 .570 .554 212 .194 .178 8 258 Periods 13% 14% 20% 15% .870 .756 .658 572 497 18 own. OWN- 10% .909 .826 .751 .683 .621 564 .513 .467 1424 386 350 319 290 263 239 218 198 180 164 149 11% .901 .812 .731 .659 .593 .535 .482 .434 391 352 317 286 258 232 209 .188 170 .153 138 124 12% .893 .797 .712 .636 .567 .507 .452 404 361 322 287 257 .229 205 .183 .163 .146 .130 .116 104 .885 .783 .693 613 543 480 425 376 333 295 261 231 204 .181 .160 .141 .125 .111 098 087 .877 .769 .675 .592 519 456 .400 351 .308 270 237 208 .182 .160 .140 .123 . 108 .095 .083 073 .432 .376 327 284 247 215 .187 .163 .141 .123 107 093 .081 070 061 .833 .694 .579 .482 402 335 279 233 .194 .162 .135 .112 .093 078 .065 054 .045 038 031 026 Present Value of Annuity of $1 Periods 3% 4% 5% 6% 8% 9% 926 HOTWOLOVOU AWN- .971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 .962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 .943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 7.887 8.384 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11.470 7% 935 1.808 2624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 7.499 7.943 8.358 8.745 9. 108 9.447 9.763 10.059 10.336 10.594 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 00000000 0000 ANN Periods 10% 11% 13% 14% 15% 20% .877 1.647 2.322 2.914 OWN-OWN .909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 .901 1.713 2.444 3.102 3.696 4.231 4.712 5.146 5.537 5.889 6.207 6.492 6.750 6.982 7.191 7.379 7.549 7.702 7.839 7.963 12% 893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7.250 7.366 7.469 .885 1.668 2.361 2.974 3.517 3.998 4.423 4.799 5.132 5.426 5.687 5.918 6.122 6.302 6.462 6.604 6.729 6.840 6.938 7.025 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 .870 1.626 2.283 2.855 3.352 3.784 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.724 5.847 5.954 6.047 6.128 6.198 6.259 .833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.843 4,870