However, if it waits the cost of the expenditure will increase to $525,000. Before considering this expenditure, VB has the following projected pre-tax cash flows and taxable income for 2018, 2019, and 2020. Use Appendix A 2018 2019 2020 Taxable income and pro-tax cashflow $120, 000 $100,000 $700,000 OW a. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2018. b. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2019. c. Based on your calculations, when should VB make this expenditure? However, if it waits the cost of the expenditure will increase to $525,000. Before considering this expenditure, VB has the following projected pre-tax cash flows and taxable income for 2018, 2019, and 2020. Use Appendix A 2018 2019 2020 Taxable income and pro-tax cashflow $120, 000 $100,000 $700,000 OW a. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2018. b. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2019. c. Based on your calculations, when should VB make this expenditure