Mr.and Mrs.Rath invested in a business that will generate the following cash flows over a three-year period.Use Appendix A.
If the Raths' marginal tax rate over the three-year period is 20% and they use a 6% discount rate,compute the NPV of the transaction.
A) $59,340
B) $55,996
C) $50,413
D) None of the above.
Correct Answer:
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