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. Year 1 $ 23,800 (7,300) (2,950) Year 2 $ 28,200 (9,700) 0 Taxable revenue Deductible expenses Nondeductible expenses 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. Note: 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. Revenue Expenses Tax cost Net cash flow Discount factor Present value NPV $ Year 0 $ 13,400 (5,100) (560) $ $ $ Answer is not complete. Year 0 13,400 $ 5,660 x 2,322 X 21,382 $ 21,382 $ 25,914 X Year 1 23,800 $ 10,250 X 4,065 X 38,115 $ 38,115 $ Year 2 28,200 9,700 x 5,550 X 43,450 43,450

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