This year, Fig Corporation made a $100,000 contribution to charity. In each of the following situations, compute the after-tax cost of this contribution assuming that Fig uses a 6 percent discount rate to compute NPV. Use Appendix A and Appendix B.

1. Fig had $8 million taxable income before consideration of the contribution.
2. Fig had $490,000 taxable income before consideration of the contribution. Next year, Figs taxable income will be $6 million, and it will make no charitable contributions.
3. Fig had $190,000 taxable income before consideration of the contribution. For the next five years, Figs annual taxable income will be $130,000, and it will make no charitable contributions.