Company Y began business in Feb 2012 by the end of the calendar year it had biled it is clients for 3.5 million of services and had incurred $ 800000 of
operation expenses .As of december 31 it had collected $ 2.9 million of its billings and had paid $ 670000 of its expenses . it expects to collect the
remaining outstanding bills and pay the remaining expenses by March 2013 Company Y adopted a caleander year for fedrel tax purpose .It may use either the
cash method or the accrual method of accounting on its first tax return and has asked you to quantify the value of using the cash method for the first year
.In doing so assume company Y uses 7 % discount rate to compute NPV