Mr. and Mrs. Rath invested in a business that will generate the following cash flows over a three-year period. 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.

Question

Mr. and Mrs. Rath invested in a business that will generate the following cash flows over a three-year period.  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.

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The Answer of Mr. and Mrs. Rath invested in a business that will generate the following cash flows over a three-year period.  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.

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