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Firm x uses an 8 percent discount rate, and Its marginal tax rate over the Ilfe of the venture will be 3 5 percent. Requlred:
Firm uses an percent discount rate, and Its marginal tax rate over the Ilfe of the venture will be percent.
Requlred:
a Complete the below table to calculate NPV Assume that the revenues are taxable Income, and the expenses are deductible.
a Should firm make the Investment?
b Complete the below table to calculate NPV Assume that the revenues are taxable income, but the expenses are nondeductible.
b Should firm make the Investment?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Req A
Req A
Req B
Complete the below table to calculate NPV Assume that the revenues are taxable income, but the expenses are
nondeductible.
Note: Cash outflows and negative amount should be indicated by a minus sign. Round discount factors to decimal
places, all other intermediate calculations and final answers to the nearest whole dollar amount.
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