Investor W has the opportunity to invest $665,000 in a new venture. The projected cash flows from the venture are as follows. Use Appendix A and Appendix B.

	Year 0				Year 1				Year 2				Year 3				Year 4
Initial investment	$	(665,000	)
Taxable revenue					$	80,500			$	75,500			$	65,500			$	60,500
Deductible expenses						(15,300	)			(15,300	)			(14,100	)			(14,100	)
Return of investment																		665,000
Before-tax net cash flow	$	(665,000	)		$	65,200			$	60,200			$	51,400			$	711,400

Investor W uses a 7 percent discount rate.

Required:

1. a-1. Complete the table below to calculate NPV. Assume her marginal tax rate over the life of the investment is 15 percent.
2. a-2. Should Investor W make the investment?
3. b-1. Complete the table below to calculate NPV. Assume her marginal tax rate over the life of the investment is 20 percent.
4. b-2. Should Investor W make the investment?
5. c-1. Complete the table below to calculate NPV. Assume her marginal tax rate in years 1 and 2 is 10 percent and in years 3 and 4 is 25 percent.
6. c-2. Should Investor W make the investment?