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As a CFO, we are evaluating a proposal. In year 2, the pretax profit is -1000. What do we do regarding the tas when we

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As a CFO, we are evaluating a proposal. In year 2, the pretax profit is -1000. What do we do regarding the tas when we are calculating the operating cash flow? the tax rate is 21%. tax is equal to 210. We have to pay taxes even when we are making a loss. Otax is equal to -210 because it can serve as an income tax shield for the company. tax is equal to because we don't pay tax if we are making a loss. tax is equal to -210 because it helps us pay less interest on this project. QUESTION 16 10 points Save Ansy Which one do you prefer as the CFO of your company? the price of your corporation's bonds increases, showing that bond investors see your firm as more willing to take risks. the price of your corporation's bonds decreases, showing that bond investors view your firm as moro willing to take risks the price of your corporation's bonds increases, showing that bond investors see your firm as less risky the price of your corporation's bonds decreases, showing that bond investors see your firm as less risky

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