Req A Req B Req C1 Req C2 Req D1 Req D2 Assuming an 8 percent discount rate for both Firm B and Ms. Ali, compute the NPV of Ms. Ali's after-tax cash flow from the employment contract and Firm B's after-tax cost of the employment contract. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Ms. Ali Before-tax salary/income Marginal tax rate Tax on income Before-tax Cashflow Tax After-tax cash flow Discount factor (8%) Present value NPV of salary received by Ms. Ali Firm B Before-tax Deduction Marginal Tax Rate Tax savings Before-tax Cash flow Tax savings After-tax Cash flow Discount factor (8%) Present value NPV of salary cost to Firm B Year 0 Year 1 Year 2 < Prev 1 of 2 Next > Show less ▲ Check my work Firm B wants to hire Ms. Ali to manage its advertising department. The firm offered Ms. Ali a three-year employment contract under which it will pay her an $104,500 annual salary in years 0, 1, and 2. Ms. Ali's projected tax rate is 25 percent in year O and a 40 percent rate in years 1 and 2. Firm B's tax rate for the three-year period is 35 percent. Use Appendix A and Appendix B. Required: a. Assuming an 8 percent discount rate for both Firm B and Ms. Ali, compute the NPV of Ms. Ali's after-tax cash flow from the employment contract and Firm B's after-tax cost of the employment contract. b. To reduce her tax cost, Ms. Ali requests that the salary payment for year O be increased to $144,500 and the salary payments for years 1 and 2 be reduced to $84,500. How would this revision in the timing of the payments change your NPV computation for both parties? c1. Firm B responds to Ms. Ali's request with a counterproposal. Firm B will pay Ms. Ali $144,500 in year O but only $79,500 in years 1 and 2. Compute the NPV of Firm B's after-tax cost under this proposal. c2. From the firm's perspective, is this proposal superior to its original offer ($104,500 annually for three years)? d1. Firm B responds to Ms. Ali's request with a counterproposal. It will pay her $144,500 in year 0 but only $79,500 in years 1 and 2. Compute the NPV of Ms. Ali's after-tax cash flow. d2. Should Ms. Ali accept the original offer or the counterproposal? Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Req C2 Req D1 Req D2 Firm B responds to Ms. Ali's request with a counterproposal. Firm B will pay Ms. Ali $144,500 in year 0 but only $79,500 in years 1 and 2. Compute the NPV of Firm B's after-tax cost under this proposal. Note: Deductions and Cash Outflows should be entered with a minus sign. Round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. Enter tax rate in two decimals and not in percentage. Before-tax Deduction Marginal tax rate Tax savings Year 0 Year 1 Year 2 < Prev 1 of 2 Next > Show less▲ Check my work