Investor W has the opportunity to invest $615,000 in a new venture. The projected cash flows...

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Investor W has the opportunity to invest $615,000 in a newventure. The projected cash flows from the venture are as follows.Use Appendix A and Appendix B.

Year 0 Year 1 Year 2 Year 3 Year 4
Initial investment $ (615,000)
Taxable revenue $ 81,500 $ 76,500 $ 66,500 $ 61,500
Deductible expenses (18,000) (18,000) (21,500) (21,500)
Return of investment 615,000
Before-tax net cash flow $ (615,000) $ 63,500 $ 58,500 $ 45,000 $ 655,000

Investor W uses a 7 percent discount rate.
a-1. Complete the table below to calculate NPV.Assume her marginal tax rate over the life of the investment is 15percent.
a-2. Should Investor W make the investment?
b-1. Complete the table below to calculate NPV.Assume her marginal tax rate over the life of the investment is 20percent.
b-2. Should Investor W make the investment?
c-1. Complete the table below to calculate NPV.Assume her marginal tax rate in years 1 and 2 is 10 percent and inyears 3 and 4 is 25 percent.
c-2. Should Investor W make the investment?

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Investor W has the opportunity to invest $615,000 in a newventure. The projected cash flows from the venture are as follows.Use Appendix A and Appendix B. Year 0Year 1Year 2Year 3Year 4Initial investment$(615,000)Taxable revenue$81,500$76,500$66,500$61,500Deductible expenses(18,000)(18,000)(21,500)(21,500)Return of investment615,000Before-tax net cash flow$(615,000)$63,500$58,500$45,000$655,000 Investor W uses a 7 percent discount rate.a-1. Complete the table below to calculate NPV.Assume her marginal tax rate over the life of the investment is 15percent.a-2. Should Investor W make the investment?b-1. Complete the table below to calculate NPV.Assume her marginal tax rate over the life of the investment is 20percent.b-2. Should Investor W make the investment?c-1. Complete the table below to calculate NPV.Assume her marginal tax rate in years 1 and 2 is 10 percent and inyears 3 and 4 is 25 percent.c-2. Should Investor W make the investment?

	Year 0		Year 1		Year 2		Year 3		Year 4
Initial investment	$	(615,000)
Taxable revenue			$	81,500	$	76,500	$	66,500	$	61,500
Deductible expenses				(18,000)		(18,000)		(21,500)		(21,500)
Return of investment										615,000
Before-tax net cash flow	$	(615,000)	$	63,500	$	58,500	$	45,000	$	655,000