Citran Company will earn $150,000 revenue as payment for a three-year consulting engagement.Compute the NPV of the revenue using Appendix A if Citran will receive $35,000 cash immediately (year 0),$35,000 cash next year (year 1)and $80,000 cash the following year (year 2).Citran will report the revenue as taxable income in the year received.Its marginal tax rate is 30%,and it uses an 8% discount rate.

Question

Quizplus · Accepted Answer

The Answer of Citran Company will earn $150,000 revenue as payment for a three-year consulting engagement.Compute the NPV of the revenue using Appendix A if Citran will receive $35,000 cash immediately (year 0),$35,000 cash next year (year 1)and $80,000 cash the following year (year 2).Citran will report the revenue as taxable income in the year received.Its marginal tax rate is 30%,and it uses an 8% discount rate.

Citran Company Will Earn $150,000 Revenue as Payment for a Three-Year