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Riley Motorcar Corp. has a tax loss in the current period of $10 million. When added to prior tax losses, Riley has a NOL carryforward

Riley Motorcar Corp. has a tax loss in the current period of $10 million. When added to prior tax losses, Riley has a NOL carryforward of $15 million. The top statutory tax rate of the foreseeable future is 21%. Assume an after-tax discount rate of 10% and future taxable income per annum of $4 million. 


Part A-What is Riley's marginal tax rate? 


Part B - What is Riley's marginal tax rate if the top statutory tax rate is expected to increase to 40% within the next 2 years?

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