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Question 16 3 pts Mrs. Williams invested in a business that will generate the following cash flows over a three- year period. Taxable revenue Deductible
Question 16 3 pts Mrs. Williams invested in a business that will generate the following cash flows over a three- year period. Taxable revenue Deductible expenses Year o Year 1 Year 2 30,000 45,000 70,000 (15,000) (15,000) (20,000) Nondeductible expenses (1,000) (4,000) (10,000) If Mrs. Williams' marginal tax rate over the three-year period is 30% and she uses a 6% discount rate, compute the NPV of the transaction. Hint: You do not need to take the present value of the Year 0 cash flows O $47,781 O $61,453 O $52,771 O $57,527
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