Please give all solution Firm X has the opportunity to invest $285,000 in a new venture. The projected cash flows from the venture are as follows. UseAppendix A and Appendix B.Initial investmentRevenuesExpensesReturn of investmentBefore-tax net cash flowReq A1Year 0$ (285,000)Req A2Before-tax cash flowTax costNet cash flow$ (285,000)Firm X uses an 8 percent discount rate, and its marginal tax rate over the life of the venture will be 30 percent.Required:a1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, and the expenses are deductible.a2. Should firm X make the investment?Req B1Discount factor (8%)Present valueNPVb1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, but the expenses are nondeductible.b2. Should firm X make the investment?Complete this question by entering your answers in the tabs below.Year 1$ 54,800(32,880)Req B2Year 0$ 21,920$Complete the below table to calculate NPV. Assume that the revenues are taxable income, and the expenses are deductible.Note: Cash outflows and negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimalplaces, all other intermediate calculations and final answers to the nearest whole dollar amount.Year 2$ 54,800(8,220)$46,580Year 10 $Year 3$ 54,800(8,220)285,000$ 331,580Year 20$Year 30

has the opportunity Appendix A and Appendix B. Initial investment Revenues Expenses Return of investment Before-tax net cash flow nvest $285,000 in a new venture The projected cash flows from the venture are as follows. Use Year 0 $ (285,000) $ (285,000) Year 1 $ 54,800 (32,880) $ 21,920 Year 2 $ 54,800 (8,220) $ 46,580 Year 3 $ 54,800 (8,220) 285,000 $ 331,580 Firm X uses an 8 percent discount rate, and its marginal tax rate over the life of the venture will be 30 percent. Required: a1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, and the expenses are deductible. a2. Should firm X make the investment? b1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, but the expenses are nondeductible. h? Should firm Y makro the invortmont?

has the opportunity Appendix A and Appendix B. Initial investment Revenues Expenses Return of investment Before-tax net cash flow nvest $285,000 in a new venture The projected cash flows from the venture are as follows. Use Year 0 $ (285,000) $ (285,000) Year 1 $ 54,800 (32,880) $ 21,920 Year 2 $ 54,800 (8,220) $ 46,580 Year 3 $ 54,800 (8,220) 285,000 $ 331,580 Firm X uses an 8 percent discount rate, and its marginal tax rate over the life of the venture will be 30 percent. Required: a1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, and the expenses are deductible. a2. Should firm X make the investment? b1. Complete the below table to calculate NPV. Assume that the revenues are taxable income, but the expenses are nondeductible. h? Should firm Y makro the invortmont?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 52P

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