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PLease answer Req A1 Company DL must choose between two business opportunities. Opportunity 1 will generate $16,600 before-tax cash in years 0 through 3. The
PLease answer Req A1
Company DL must choose between two business opportunities. Opportunity 1 will generate $16,600 before-tax cash in years 0 through 3. The annual tax cost of Opportunity 1 is $2,988 in years 0 and 1 and $1,992 in years 2 and 3 . Opportunity 2 will generate $16,600 before-tax cash in year 0,$24,000 before-tax cash in years 1 and 2 , and $12,000 before-tax cash in year 3 . The annual tax cost of Opportunity 2 is $4,800 in years 0 through 3 . Use A ppendix A and A ppendix B. Required: a1. Complete the below tables to calculate NPV. Assume that the discount rate is 10 percent. a2. Which opportunity should Company DL choose? Complete this question by entering your answers in the tabs below. Complete the below tables to calculate NPV. Assume that the discount rate is 10 percent. Note: Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Company DL must choose between two business opportunities. Opportunity 1 will generate $16,600 before-tax cash in years 0 through 3. The annual tax cost of Opportunity 1 is $2,988 in years 0 and 1 and $1,992 in years 2 and 3 . Opportunity 2 will generate $16,600 before-tax cash in year 0,$24,000 before-tax cash in years 1 and 2 , and $12,000 before-tax cash in year 3 . The annual tax cost of Opportunity 2 is $4,800 in years 0 through 3 . Use A ppendix A and A ppendix B. Required: a1. Complete the below tables to calculate NPV. Assume that the discount rate is 10 percent. a2. Which opportunity should Company DL choose? Complete this question by entering your answers in the tabs below. Complete the below tables to calculate NPV. Assume that the discount rate is 10 percent. Note: Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amountStep by Step Solution
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