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5 contract is complete. Calculate the after-tax benefit of this counterproposal to Leslie and the after-tax cost to French c-2. Are both parties better off under this alternative than under the original plan? 11 ints Complete this question by entering your answers in the tabs below. eBook Reg A Reg B Req c1 Reg C2 Print References If Leslie expects her marginal tax rate to be 15 percent this year and 25 percent next year, calculate the after-tax net present value of this contract to Leslie, using a 6 percent discount rate. (Cash outflows and Negative amount should be indicated by a minus sign. Round discount factors to 3 decimal places, intermediate calculations and final answers to the nearest whole dollar amount.) Show less Amount $ 0 Year 0 Cash received Tax cost Net cash flow Year 1 Cash received Tax cost Net cash flow Discount factor (6%) Present value of year 1 cash flow NPV $ 0 ReqB> ac < Prey 5 of 9 !!! Next > .con contexternal browser launchur http253A%252F%252Fnewconnect.education.com HW4 Chapter 4 Saved Help Seve SE 5 Check Show less Amount 11 Soints cBook $ 0 print References $ 0 Value of restructured transaction to Leslie Year 0 Cash received Tax cost Net cash flow Year 1 Cash received Tax cost Net cash flow Discount factor (6%) Present value of year 1 cash flow NPV Cost of restructured transaction to French Year 0 Cash paid Tax savings Net cash flow Year 1 Cash paid Tax savings Not cash flow Discount factor (6%) Present value of year 1 cash flow NPV $ 5 $ 0 Me < Prey 5 of 9 Next > 100 SE AR o O i X httle to-treateducatX hupellets framedor + ? https://ezto.mheducation.com/ext/map/index.html?_con-condexternal_browser-daunchurahttp%253A%252F%252Fnewconnectmheducation.com HW4 Chapter 4 Seved Hele 5 contract is complete. Calculate the after-tax benent of this counterproposal to Leslie and the after-tax cost to Frencn. c-2 Are both parties better off under this alternative than under the original plan? 1.11 points Complete this question by entering your answers in the tabs below. eBook Req A Reg? Req ci Reg C2 Print References French Corporation expects its marginal tax rate to be 21 percent both years, Calculate the net present value of French's after-tax cost to enter into this contract using a 6 percent discount rate (Cash outflows and Negative amount should be Indicated by a minus sign. Round discount factors to 3 decimal places, intermediate calculations and final answers to the nearest whole dollar amount.) Show less Amount $ 0 Year 0 Cash paid Tax savings Net cash flow Year 1 Cash paid Tax savings Not cash flow Discount factor (6%) Present value of year 1 cash flow NPV $ 0 < Reg ReqC1 > C @ https://eztomheducation.com/ext/map/index.html?_con-con&external_browser:OlaunchUit http%253A%252P%252Fnewconnectmeducation.com HW4 Chapter 4 Saved Help Seve SE Che 5 Problem 04-12 (Algo) [LO 4-4) 11 eBook Print French Corporation wishes to hire Leslie as a consultant to design a comprehensive staff training program. The project is expected to take one year, and the parties have agreed to a tentative price of $78,000. French Corporation has proposed payment of one-half of the fee now, with the remainder paid in one year when the project is complete. Use Appendix A and Appendix B Required: a. If Leslie expects her marginal tax rate to be 15 percent this year and 25 percent next year, calculate the after-tax net present value of this contract to Leslie, using a 6 percent discount rate. b. French Corporation expects its marginal tax rate to be 21 percent both years. Calculate the net present value of French's after-tax cost to enter into this contract using a 6 percent discount rate C-1. Given that Leslie expects her tax rate to increase next year, she would prefer to receive more of the income from the project up front. Consider an alternative proposal under which French pays Leslie $55.000 this year, and $20,000 in one year when the contract is complete. Calculate the after-tax benefit of this counterproposal to Leslie and the after-tax cost to French c-2. Are both parties better off under this alternative than under the original plan? References Complete this question by entering your answers in the tabs below. Reg A ReqB Regci Reg C2 IF Leslie expects her marginal tax rate to be 15 percent this year and 25 percent next year, calculate the after-tax net present value of this contract to Leslie, using a 6 percent discount rate. (Cash outflows and Negative amount should be indicated by a minus sign. Round discount factors to 3 decimal places, intermediate calculations and final answers to the nearest whole dollar amount.) Show less Amount Year o C < Prev 5 of 9 ! Next >