Firm W, which has a 30 percent marginal tax rate, plans to operate a new business that should generate $55,000 annual cash flow/ordinary Income for three years (years 0, 1, and 2). Alternatively, Firm W could form a new taxable entity (Entity N) to operate the business. Entity N would pay tax on the three-year Income stream at a 20 percent rate. The nondeductible cost of forming Entity N would be $6,500. Firm W uses a 5 percent discount rate. Use Appendix A and Appendix B Required: a. Complete the below tables to calculate NPV. b. Should it operate the new business directly or form Entity N to operate the business? Complete this question by entering your answers in the tabs below. Required A Required B Complete the below tables to calculate NPV. (Cash outflows should be indicated by a minus sign. Round discount factors to 3 decimal places, intermediate calculations and final answers to the nearest whole dollar amount.) Year 0 Year 1 Year 2 Business operated by Firm W: After-tax cash flow at 30% tax rate Discount factor (5%) Present value NPV Business operated by Entity N: After-tax cash flow at 20% tax rate Cost of forming Entity N Net cash flow Discount factor (5%) Present value $ 0S 0 S 0 $ 0 S 0 S 0 $ 0 NPV Required A Required B >