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Investor B has $178,000 in an investment paying 7 percent taxable interest per annum. Each year B incurs $930 of expenses relating to this
Investor B has $178,000 in an investment paying 7 percent taxable interest per annum. Each year B incurs $930 of expenses relating to this investment. Compute B's annual net cash flow assuming the following: Required: a. B's marginal tax rate is 10 percent, and the annual expense is not deductible. b. B's marginal tax rate is 35 percent, and the annual expense is deductible. c. B's marginal tax rate is 25 percent, and the annual expense is not deductible. d. B's marginal tax rate is 40 percent, and only $560 of the annual expense is deductible. (For all requirements, round your intermediate calculations to the nearest whole dollar amount.) a. Net cash flow b. Net cash flow c. Net cash flow d. Net cash flow Amount
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