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I am having problems with part b. Firm H has the opportunity to engage in a transaction that will generate $100.000 cash flow (and taxable

I am having problems with part b. image text in transcribed
Firm H has the opportunity to engage in a transaction that will generate $100.000 cash flow (and taxable income) in year 0. The firm could restructure the transaction in a way that doesn't change before tax cash flow but results in no taxable income in year 0. $50,000 taxable income in year 1, and the remaining $50,000 taxable income in year 2. Assume a 6 percent discount rate and a 21 percent marginal tax rate for years 0 and 1, and a 30 percent rate for year 2 Use Aprendix A and Appendix B. a. Prepare a Restructured transaction b. What is the effect on the NPV of the restructured transaction? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Restructured transaction. (cash outflows and negative amounts should be indicated by a minus sign. Round discount factors to a decimal places. Round intermediate calculations and final answers to the nearest whole dollar amount.) $ Year o 100.000 $ 0 100,000 $ Year 1 OPS (10.500) (10.500) 0.94 (9.902 Before-lax cash flow Tax cost Not cash now Discount factor (6) Present value NPV Year 2 0 (15,000) (15,000) 0890 (13350) $ $ $ 100,000 $ 78.748 Required B >

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