Compute NPV of tax savings

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Reference no: EM13748899

Company X suffered a $350,000 NOL in 2014. The company will carryback this NOL two years (2012 net income = $60,000 and 2013 net income = $110,000) and carryforward the remaining NOL to 2016, a year in which the company expects it's net income to be $1M. The company will be operating at a loss in 2015. Using 5 percent discount rate, compute NPV of tax savings from 2014 NOL.

Reference no: EM13748899

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