Margaret Daniels has the opportunity to invest $670,000 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	$ (670,000)
Taxable revenue		$ 82,500	$ 77,500	$ 67,500	$ 62,500
Deductible expenses		(17,700)	(17,700)	(14,900)	(14,900)
Return of investment					670,000
Before-tax net cash flow	$ (670,000)	$ 64,800	$ 59,800	$ 52,600	$ 717,600

Margaret uses a 7 percent discount rate.

Required:

Complete the table below to calculate NPV. Assume Margaret's marginal tax rate over the life of the investment is 15 percent.

Complete the table below to calculate NPV. Assume Margaret's marginal tax rate over the life of the investment is 20 percent.

Complete the table below to calculate NPV. Assume Margaret's marginal tax rate in years 1 and 2 is 10 percent and in years 3 and 4 is 25 percent.

Table includes Before-tax cash flow, tax cost, after-tax cash flow, Discount factor 7%, present value, and NPV for Year 0, Year1, Year 2, Year 3, and Year 4