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Taylor Incorporated made a $75,000 cash expenditure this year (year 0). Use Appendix A of your textbook provided to compute the after-tax cost if Taylor
Taylor Incorporated made a $75,000 cash expenditure this year (year 0). Use Appendix A of your textbook provided to compute the after-tax cost if Taylor must capitalize the expenditure and amortize it ratably over three years, beginning in year 0. Taylor has a 21% marginal tax rate and uses a 7% discount rate.
Multiple Choice -
$49,344
-
$56,316
-
$60,258
-
None of these choices are correct
Taylor Incorporated made a $75,000 cash expenditure this year (year 0). Use Appendix A of your textbook provided to compute the after-tax cost if Taylor must capitalize the expenditure and amortize it ratably over three years, beginning in year 0. Taylor has a 21% marginal tax rate and uses a 7% discount rate.
Multiple Choice
$49,344
$56,316
$60,258
None of these choices are correct
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