Please help with the following question:

A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,800 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 35% and can depreciate the investment for tax purposes using the five-yearMACRStax depreciation schedule. Suppose the opportunity cost of capital is 10%. Ignore inflation.

a.Calculate project NPV for each company.(Negative answers should be indicated by a minus sign.Do not round intermediate calculations.Round your answers to the nearest whole dollar amount.)

Company A: $

Company B: $

b-1.What is the IRR of the after-tax cash flows for each company?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Company A$%

Company B$%

b-2.What does comparison of the IRRs suggest is the effective corporate tax rate?(Do not round intermediate calculations.Enter your answer as a percent rounded to 1 decimal place.)

Effective tax rate%