Question
QUESTION 9 Jonah has the choice of paying Rita $20,000 today or $80,000 in ten years. Assume Jonah can earn a 10 percent after-tax rate
QUESTION 9
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Jonah has the choice of paying Rita $20,000 today or $80,000 in ten years. Assume Jonah can earn a 10 percent after-tax rate of return. What is the present value of the $80,000 payment due in 10 years?
QUESTION 10
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Komiko Tanaka invests $13,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 11 percent before-tax rate of return. She plans to invest for the long term. How much cash will Komiko retain, after-taxes, if she holds the investment for 6 years and then she sells it when the long-term capital gains rate is 15 percent?
QUESTION 11
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Komiko Tanaka invests $13,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 11 percent before-tax rate of return. She plans to invest for the long term. If she holds the investment for 6 years and then she sells it when the long-term capital gains rate is 15 percent, what is her after-tax rate of return?
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Knowledge Audit Complete Self Assessment Guide Practical Tools For Self Assesment
Authors: Gerardus Blokdyk
1st Edition
0655199837, 978-0655199830
