Question
Suppose that a business investment is subject to a 50-percent tax but that the return to private savings is not taxed. The after-tax rate of
Suppose that a business investment is subject to a 50-percent tax but that the return to private savings is not taxed. The after-tax rate of return on business investment is currently 9 percent. If a proposed government project is predicted to displace business investment, then the social rate of discount is:
a.9 percent.
b.18 percent.
c.36 percent.
d.infinite.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
