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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

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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 Year o $13,200 (3,700) (845) Year 1 $22,400 (7.100) (3.600) Year 2 $ 25,700 (12,200) 0 36 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 Year 1 Year 2 Revenue Expenses Tax cont Not cash flow Discount factor Present value NPV $ os OS 0 $ OS 0

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