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Problem 2 Agatha is planning to start a new business venture and must decide whether to operate as a sole proprietorship or incorporate. She projects

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Problem 2 Agatha is planning to start a new business venture and must decide whether to operate as a sole proprietorship or incorporate. She projects that the business will generate annual cash ow and taxable income of $100,000. Agatha's personal marginal tax rate, given her other sources of income, is 35 percent. Problem 2 {continued} o. If Agatha operates the business as a sole proprietorship, calculate the annual aftertax cash ow available for reinvestment in the business venture. b. If Agatha operates the business as a regular (C) corporation that makes no dividend distributions, calculate the annual aftertax cash ow available for reinvestment in the business

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