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Firm Q is about to engage in a transaction with the following cash flows over a three-year period. Use Arpendix A and Appendix B. Taxable

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Firm Q is about to engage in a transaction with the following cash flows over a three-year period. Use Arpendix A and Appendix B. Taxable revenue Deductible expenses Nondeductible expenses Year e $17.500 (4,600) (575) Year 1 $21,500 (8,600) (3,880) Year 2 $ 25,600 (12,000) Required: 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 final answer to the nearest whole dollar amount.) Year o Yeart Year 2 Revenue Expenses Tax Cost Not cash flow Discount factor Present value NPV

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