1. Becky is starting a business and wants to consider whether organizing the business as a partnership or corporation would be better depending on how long she wants to keep operating the business. First, she puts together some expectations about what her pre-tax rate of return will be on investments and what tax rates will be over these investment horizons. She expects that the pre-tax rate of return for her business will remain constant at 10% and that the corporate tax rate, personal tax rate, and capital gains tax rates will be 35%, 37%, and 20%, respectively. Becky asks for your assistance in assessing what the after-tax accumulations are for forming in both manners and helping her decide how to organize her business.
   1. What would be the annualized after-tax accumulations of organizing as a partnership or corporation if she decides to operate the business for 20 years, 40 years, and 60 years? Based on these annualized after-tax accumulations for the different horizons, what strategy would you recommend for her with each investment horizon?