Present Value of $1 Periods 3% 5% 4% 1962 925 889 .952 6% .943 .890 .840 .792 7% .935 .873 .816 .763 .713 .666 .623 .855 .822 .790 .760 .731 .703 .676 .582 .971 .943 .915 .888 .863 .837 .813 .789 .766 .744 .722 .701 .681 .661 .642 .623 .605 .587 .570 .554 OOONO VOU AWN- 8% .926 .857 .794 .735 .681 .630 .583 .540 .500 .463 .429 .397 .368 .340 .907 .864 .823 .784 .746 .711 Sn .677 .645 .614 .585 .557 .530 .505 .481 .458 558 9% .917 .842 .772 .708 .650 .596 .547 .502 460 422 388 .356 326 .299 .275 .252 .231 .212 .194 .650 .544 .508 .475 444 .415 .388 .527 .497 .625 .601 .577 .555 .534 .469 442 .417 .362 .315 .339 292 .513 .436 .317 270 494 .475 .456 .416 .396 .377 .394 371 .350 .331 .312 .296 .277 .258 .250 .232 .215 .178 Periods 11% 12% 14% 15% .901 .893 .877 .870 .797 10% .909 .826 .751 .683 .621 .564 .513 .769 .675 .756 .658 .572 20% .833 .694 .579 .482 .402 .592 .497 335 .812 .731 .659 .593 .535 .482 .434 .391 .352 .317 .279 OU DONDOO VOLAWN- .432 .376 .327 .284 .467 424 .233 .386 13% .885 .783 .693 .613 .543 480 .425 376 .333 .295 .261 .231 204 .181 .160 .141 .125 .111 .098 .087 .712 .636 .567 .507 .452 404 .361 .322 .287 .257 .229 .205 .183 .163 .146 .130 .116 .104 .350 .247 .215 .187 .286 .258 .519 .456 .400 .351 .308 .270 .237 .208 .182 .160 .140 .123 .108 .095 083 .073 .319 .290 .263 .239 218 .198 .180 .164 232 209 .163 .141 .123 .107 .093 .194 .162 .135 .112 .093 .078 .065 .054 .045 .038 .031 .026 .188 .170 .153 .138 .124 .081 .070 .061 .149 Y Corporation VB was formed in 2019. Immediately prior to year-end, VB is considering a $500,000 deductible expenditure. It can either make the expenditure before the end of 2019, or wait until 2020. However, if it waits the cost of the expenditure will increase to $525,000. Before considering this expenditure, VB has the following projected pre-tax cash flows and taxable income for 2019, 2020, and 2021. Use Appendix A. Rectangular Shio 2019 Taxable income and pre-tax cashflow 2020 $ 400,000 2021 $ 700,000 $ 120,000 a. Using a 5 percent discount rate, compute the NPV of VB's after-tax cash flows if the expenditure is in 2019. b. Using a 5 percent discount rate, compute the NPV of VB's after-tax cash flows if the expenditure is in 2020. c. Based on your calculations, when should VB make this expenditure