D Question 6 Mr. and Mrs. Rath invested in a business that will generate the following cash flows over a three-year period. Taxable revenue Discount Factor Deductible expenses (15,000 ) $59,340 $55,996 Year O $50,413 30,000 None of the above. Year 1 40,000 (15,000) 0.943 Year 2 If the Raths' marginal tax rate over the three-year period is 20% and they use a 6% discount rate, compute the NPV of 60,000 (20,000) 0.890

Ms. Lenz has $100,000 in an investment paying 9% annual interest. Her marginal tax rate is 25%. Which of th Ms. Lenz's annual before-tax cash flow from this investment is $9,000. If the interest is tax-exempt, Ms. Lenz's annual after-tax cash flow is $9,000. If the interest is taxable, Ms. Lenz's annual after-tax cast flow is $6,750. None of the above is false. Ms. Lenz has $100,000 in an investment paying 9% annual interest. Her marginal tax rate is 25%. Which of th Ms. Lenz's annual before-tax cash flow from this investment is $9,000. If the interest is tax-exempt, Ms. Lenz's annual after-tax cash flow is $9,000. If the interest is taxable, Ms. Lenz's annual after-tax cast flow is $6,750. None of the above is false