Question
Molton Inc. made a $80,000 cash expenditure this year (year 0). Compute the after-tax cost if Molton must capitalize the expenditure and amortize it ratably
Molton Inc. made a $80,000 cash expenditure this year (year 0). Compute the after-tax cost if Molton must capitalize the expenditure and amortize it ratably over four years, beginning in year 0. Molton has a 21% marginal tax rate and uses a 8% discount rate.
Year 1 .9259
Year 2 .8573
Year 3 .7938
PV Factor at 8%
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External Auditing And Quality Accounting Finance Sustainability Governance And Fraud Theory And Application
Authors: Iffet Kesimli
1st Edition
9811305250, 978-9811305252
