Please help with question 4. I attached the tables. If anything is incorrect please help. Thank You!!!!

The following questions will be used to estimate risk. Please use Table 3 to calculate cash flow. 4. The controller is worried about tax increases and estimates that the tax rate with be raised to 50% (federal and Maryland state) in year 4. Also there is a concern that expenses are understated. He asks, "What would happen to the NPV calculation if the cash tax expenses come in 2% higher than estimated and the tax rate increases to 50% in year 4?" This will allow a subjective evaluation of the project risk. Calculate a new cash flow time line with cash expenses 10% higher than those in Table 2 and with a 50% tax rate. Use Table 3 Instructions Cost of Capital Capital Budgeting Type here to search & e L Table 2 A 5 Year im Cash from Cash outflow, Revenue in expenses in Depreciation in Taxable Income Tax in Millions After tax Cash Flow In $Millions $Millions $Millions in $ Millions 27.5% rate $Millions NPV $1,800 $1,728 $50.02 $21.99 $6.05 $65.95 $2.31 $1,900 $1,824 $85.72 -$9.72 -$2.67 $78.67 $2.76 $2,000 $1,920 $61.22 $18.79 $5.17 $74.83 $2.63 $2,100 $2,016 $43.72 $40.29 $11.08 $72.92 $2.56 $2,200 $2,112 $31.26 $56.75 $15.60 $72.40 $2.54 $2,300 $2,208 $31.22 $60.78 $16.71 $75.29 $2.64 $2,400 $2,304 $31.26 $64.75 $17.80 $78.20 $2.74 $2,500 $2,400 $15.61 $84.39 $23.21 $76.79 $2.69 $2,600 $2,496 $104.00 $28.60 $75.40 $2.65 $2,700 $2,592 $108.00 $29.70 $78.30 $2.75 11 $2,600 $2,496 $104.00 $28.60 $75.40 $2.65 12 $2,500 $2,400 $100.00 $27.50 $72.50 $2.54 9 in 10 Instructions Cost of Capital Capital Budgeting Type here to search o e Loe 92% M N 13 15 18 20 $2,400 $2,304 $96.00 $26.40 $69.60 $2.44 14 $2,200 $2,112 $88.00 $24.20 $63.80 $2.24 $2,000 $1,920 $80.00 $22.00 $58.00 $2.04 $1,800 $1,728 $72.00 $19.80 $52.20 $1.83 17 $1,500 $1,440 $60.00 $16.50 $43.50 $1.53 $1,200 $1,152 $48.00 $13.20 $34.80 $1.22 $800 $768 $32.00 $8.80 $23.20 $0.81 $400 $384 $16.00 $4.40 $27.60 $0.97 Table 3 NPV= $44.54 Tax in Millions Cash from Cash outflow, 27.5% rate in Revenue in expenses in Depreciation in Taxable income years 1, 2, 3 and After tax Cash Flow In $Millions $Millions $Millions in $ Millions 50% there after Millions NPV 1 $1,800 $1,762.56 $50.02 -$12.57 -$3.46 $40.90 $27.27 2 $1,900 $1,860.48 $85.72 -$46.20 -$12.70 $52.22 $34.82 $2,000 $1,958.40 $61.22 $19.62 -$5.40 $47.00 $31.33 Instructions Cost of Capital Capital Budgeting ar E- 92% O te Le a Type here to search M N $2,056.32 $2,154.24 $2,252.16 $2,350.08 $2,448.00 $2,545.92 $2,643.84 $2,545.92 $2,448.00 $2,350.08 $2,154.24 $1,958.40 $1,762.56 $1,468.80 $1,175.04 $783.36 $391.68 $2,100 $2,200 $2,300 $2,400 $2,500 $2,600 $2,700 $2,600 $2,500 $2,400 $2,200 $2,000 $1,800 $1,500 $1,200 $800 $400 $43.72 $31.26 $31.22 $31.26 $15.61 $0.00 $0.00 $0.00 -$0.04 $14.50 $16.62 $18.67 $36.39 $54.08 $56.16 $54.08 $52.00 $49.92 $45.76 $41.60 $37.44 $31.20 $24.96 $16.64 $8.32 $0.02 $7.25 $8.31 $9.33 $18.20 $27.04 $28.08 $27.04 $26.00 $24.96 $22.88 $20.80 $18.72 $15.60 $12.48 $8.32 $4.16 S $43.70 $29.13 $38.51 $25.67 $39.53 $26.35 $40.59 $27.06 $33.80 $22.53 $27.04 $18.03 $28.08 $18.72 $27.04 $18.03 $26.00 $17.33 $24.96 $16.64 $22.88 $15.25 $20.80 $13.87 $18.72 $12.48 $15.60 $10.40 $12.48 $8.32 $8.32 $5.55 $4.16 $2.77 NPV= $381.55 Instructions Cost of Capital Capital Budgeting O o Type here to search 92% e f LPG e