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Corporation VB was formed in 2018. Immediately prior to year end, VB is considering a $500,000 deductible expenditure. It can either make the expenditure before the end of 2018, or wait until 2019. 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 2018, 2019, and 2020. Use Appendix A. Taxable income and pre-tax cashflow 2018 $ 120,000 2019 $ 400,000 2020 $ 700,000 a. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2018. b. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2019. C. Based on your calculations, when should VB make this expenditure? Corporation VB was formed in 2018. Immediately prior to year end, VB is considering a $500,000 deductible expenditure. It can either make the expenditure before the end of 2018, or wait until 2019. 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 2018, 2019, and 2020. Use Appendix A. Taxable income and pre-tax cashflow 2018 $ 120,000 2019 $ 400,000 2020 $ 700,000 a. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2018. b. Using a 5 percent discount rate, compute the NPV of VB's after-tax cashflows if the expenditure is in 2019. C. Based on your calculations, when should VB make this expenditure