Question
Marz Inc. made a $45,000 cash expenditure this year (year 0). Compute the after-tax cost if Marz must capitalize the expenditure and amortize it ratably
Marz Inc. made a $45,000 cash expenditure this year (year 0). Compute the after-tax cost if Marz must capitalize the expenditure and amortize it ratably over three years, beginning in year 0. Marz has a 21% marginal tax rate and uses a 8% discount rate.
| Year 1 | Year 2 | Year 3 | |
| PV Factor at 8% | .9259 | .8573 | .7938 |
| $45,000 | ||
| $36,233 | ||
| $35,550 | ||
| $60,388 |
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The Social Audit Consumer Handbook A Guide To The Social Responsibilities Of Business To The Consumer
Authors: Charles Medawar
1978th Edition
0333216660, 978-0333216668
