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Lin Vu has $ 1 0 0 , 0 0 0 in an investment paying 9 percent taxable interest per annum. Each year Vu incurs
Lin Vu has $ in an investment paying percent taxable interest per annum. Each year Vu incurs $ of expenses relating to
this investment. Compute Vu's annual net cash flow assuming the following:
Required:
a Vu's marginal tax rate is percent, and the annual expense is not deductible.
b Vu's marginal tax rate is percent, and the annual expense is deductible.
c Vu's marginal tax rate is percent, and the annual expense is not deductible.
d Vu's marginal tax rate is percent, and only $ of the annual expense is deductible.
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