Card bought an investment that will generate the following cash flows over a three-year period. Use Appendix A.
If Ms. Card's marginal tax rate over the three year period is 40% and she uses a 6% discount rate, compute the NPV of the transaction.

Question

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11ecf084_748b_2cbf_b4a1_c79c7e16bd62_TB1022_11
$$\mathrm { NPV } = \$ 19,200 + \$ 28,384 + \$ 37,380 = \$ 84,964$$ 
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Card Bought an Investment That Will Generate the Following Cash