Compute the npv

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Question - Company N will receive $100,000 of taxable revenue from a client.

Required -

1. Compute the NPV of the $100,000 assuming that Company N will receive $50,000 now (year 0) and $50,000 in year 1. The company's marginal tax rate is 30 percent, and it uses a 6 percent discount rate.

2. Compute the NPV of the $100,000 assuming that Company N will receive $50,000 in year 1 and $50,000 in year 2. The company's marginal tax rate is 40 percent, and it uses a 4 percent discount rate.

3. Compute the NPV of the $100,000 assuming that Company N will receive $20,000 now (year 0) and $20,000 in years 1, 2, 3, and 4. The company's marginal tax rate is 10 percent, and it uses a 9 percent discount rate.

Reference no: EM133187302

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