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Darlene plans to purchase $3,000 in furniture for her office. She is currently in the 20% tax bracket, so her after tax cost of the
Darlene plans to purchase $3,000 in furniture for her office. She is currently in the 20% tax bracket, so her after tax cost of the furniture is $ . if she purchases it in the current year. She expects her marginal rate will increase to 25% next year. If she waits until next year to purchase the furniture and her after tax rate of return is 7%, the after-tax cost of her furniture will be $ . (Round your answers to the nearest whole dollar.). (clear explanation)
Year 4% 5% 6% 7% 1 2 3 4 5 .962 .925 .889 .855 .822 .952 .907 .864 .823 .784 .943 .890 .840 .792 .747 .935 .873 .816 .763 .713Step by Step Solution
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