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Firm Q is about to engage in a transaction with the following cash flows over a three-year period, Use Anpendix 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 Anpendix A and Appendix B Taxable revenue Deductible expenses Nondeductible expenses Year o $ 21,400 (6,500) (615) Year 1 $ 27,000 (8,100) (3,200) Year 2 $ 32,600 (12,300) 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.) Answer is not complete. IS $ Revenue Expenses Tax cost Net cash flow Discount factor Present value NPV Year 0 21.400 (7.115) (6.420) 7,865 Year 1 27.000 $ (11,300) (8,100) X 7,600 $ 1.060 % $ Year 2 32,600 (12,300) (9,780) 10.520 1.060 X 11.151 $ $ $ 7,865 IS 8.056

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