{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T08:17:23-04:00", "answer_date": "2024-06-28 08:17:23", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4271708", "url": "\/study-help\/questions\/westerngearcom-is-expected-to-have-operating-losses-of-350000-4271708", "question_creation_date_js": "2024-06-28T08:17:23-04:00", "question_creation_date": "Jun 28, 2024 08:17 AM", "meta_title": "[Solved] WesternGear.com is expected to have opera | SolutionInn", "meta_description": "Answer of - WesternGear.com is expected to have operating losses of $ 350,000 in its first year of business and $ 270,000 in its s | SolutionInn", "meta_keywords": "westerngear,expected,operating,losses,$,350,000,first,year,business,270,000,second,company", "question_title_h1": "WesternGear.com is expected to have operating losses of $ 350,000 in its first year of business and $ 270,000 in its second year. However, the", "question_title": "WesternGear.com is expected to have operating losses of $ 350,000 in its", "question_title_for_js_snippet": "WesternGear com is expected to have operating losses of $ 350,000 in its first year of business and $ 270,000 in its second year However, the company expects to have income before taxes of $ 400,000 in its third year and $ 650,000 in its fourth year The company's required rate of return is 14 percent Assume a tax rate of 20 percent and that current losses can be used to offset taxable income in future years What is the present value of tax savings related to the operating losses in years 1 and 2 ", "question_description": "

WesternGear.com is expected to have operating losses of $ 350,000 in its first year of business and $ 270,000 in its second year. However, the company expects to have income before taxes of $ 400,000 in its third year and $ 650,000 in its fourth year. The company's required rate of return is 14 percent. Assume a tax rate of 20 percent<\/u><\/strong> and that current losses can be used to offset taxable income in future years. What is the present value of tax savings related to the operating losses in years 1 and 2?<\/p>", "transcribed_text": "", "related_book": { "title": "Data Analysis And Decision Making", "isbn": "538476125, 978-0538476126", "edition": "4th Edition", "authors": "Christian Albright, Wayne Winston, Christopher Zappe", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/415.jpg", "uri": "\/textbooks\/data-analysis-and-decision-making-4th-edition-415", "see_more_uri": "" }, "free_related_book": { "isbn": "1020214279", "uri": "\/textbooks\/centrifugal-pumps-an-essay-on-their-construction-and-operation-and-some-account-of-the-origin-and-development-in-this-and-other-countries-1st-edition-978-1020214271-295321", "name": "Centrifugal Pumps An Essay On Their Construction And Operation And Some Account Of The Origin And Development In This And Other Countries", "edition": "1st Edition" }, "question_posted": "2024-06-28 08:17:23", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/see-table-25-showing-financial-statement-data-and-stock-price-210892", "description": "See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. 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What is the annualized cost of skipping the discount on day 15 and paying the full invoice amount on day 30? 24.6% 37.2% 18.6% 8.1%", "stars": 3 }, { "url": "\/study-help\/questions\/total-monthly-production-costs-are-10000-on-a-lot-of-1286357", "description": "total monthly production costs are 10,000 on a lot of 250 units. you sell each unit for $150. 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