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Firm X has the opportunity to invest $264,000 in a new venture. The projected cash flows from the venture are as follows. Use Appendix A

Firm X has the opportunity to invest $264,000 in a new venture. The projected cash flows from the venture are as follows. Use Appendix A and Appendix B. Initial investment Revenues Year 0 $ (264,000) Year 1 Year 2 Year 3 $ 50,400 (30,240) $ 50,400 (7,560) $ 50,400 (7,560) Before-tax net cash flow $ (264,000) $ 20,160 $ 42,840 264,000 $306,840 Expenses Return of investment Firm X uses an 8 percent discount rate, and its marginal tax rate over the life of the venture will be 30 percent. Required: a-1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, and the expenses are deductible. a-2. Should firm X make the investment? b-1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, but the expenses are nondeductible. b-2. Should firm X make the investment

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