In 2016(year 0), Jessee exercised a stock option by paying $100 per share for 225...

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In 2016(year 0), Jessee exercised a stock option by paying $100 per share for 225 shares of ABC stock. The market price at date of exercise was $312 per share. In 2023, Jessee sold the 225 shares for $480 per share. Assuming that Jessee is in the 35 percent tax bracket, has a 15 percent capital gains rate, and uses a 6 percent discount rate, compute the 2016 NPV of the cash flows from the exercise and sale if: (Use Appendix A).
Required:
a. The stock option was nonqualified.
b. The stock option was an ISO.
Complete this question by entering your answers in the tabs below.
Required A
Compute the 2016 NPV of the cash flows from the exercise and sale if the stock option was nonqualified.
Note: Round your intermediate calculations to the nearest whole dollar amount.
NPV
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