Mr. A who has a 35 percent marginal tax rate, must declde between two investment opportunities, both of which require a $50,000 Inltial cash outlay In year0. Investment 1 will yield $8,000 before-tax cash flow In years 1, 2, and 3. This cash represents ordinary taxable Income. In year 3, Mr. A can liquidate the Investment and recover his $50,000 cash outlay. He must pay a nondeductible $200 annual fee (In years 1, 2, and 3) to maintaln Investment 1. Investment 2 will not yleld any before-tax cash flow during the perlod over which Mr. A will hold the Investment. In year 3, he can sell Investment 2 for $75.000 cash. His $25,000 profit on the sale will be capital gain taxed at 15 percent. Assume a 6 percent discount rate. Use Appendix A and Appendix B. a. Calculate net present value of Investment 1. b. Calculate net present value of Investment 2 C. Which Investment has the greater NPV? Complete this question by entering your answers in the tabs below. Required ARequired B Required O Calculate net present value of Investment 1. (Enter cash outflows with a minus sign. Round discount factors to 3 decimal places.) NPV of after-tax cash flow YO NPV of after-tax cash flow Y1 NPV of after-tax cash flow Y2 NPV of after-tax cash flow Y3 NPV of after-tax cash flow, YO to Y3