In $2016($year $0),$ Jessee exercised a stock option by paying $$100$ per share for $225$ shares of ABC stock. The market price at date of exercise was $$312$ per share. In $2023,$ Jessee sold the $225$ shares for $$480$ per share. Assuming that Jessee is in the $35$ percent tax bracket, has a $15$ percent capital gains rate, and uses a $6$ percent discount rate, compute the $2016$ NPV of the cash flows from the exercise and sale if: $($Use Appendix A$).$

Required:

a$.$ The stock option was nonqualified.

b$.$ The stock option was an ISO.

Complete this question by entering your answers in the tabs below.

Required $A$

Compute the $2016$ NPV of the cash flows from the exercise and sale if the stock option was nonqualified.

Note: Round your intermediate calculations to the nearest whole dollar amount.

NPV