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HACTEHA [7]
3 years ago
12

Would you prefer a fully taxable investment earning 8.1 percent or a tax-exempt investment earning 6.1 percent? (assume a 28 per

cent tax rate) why?
Business
1 answer:
blsea [12.9K]3 years ago
7 0
<span>Prefer the 6.1 percent tax-exempt investment. Let's do the math and see why the tax-exempt investment is the better choice. For the 8.1% taxable investment, you get taxed at the rate of 28%. Which means that you only get to keep 100%-28% = 72% of your gains. So 0.72 * 8.1 = 5.832 which means your effective earning percentage is only 5.832% which is less than the 6.1% rate you get for the tax-exempt investment. Another consideration that wasn't taken into account for the question is the earnings on the taxable investment may push you up into a higher tax bracket. Which in turn increases the tax burden on your other investments. So the better choice here is the 6.1% tax-exempt investment even though that first glance the 8.1% investment looks higher.</span>
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Project scope importance:

Project scope is a part of the project planning process that documents specific goals, deliverables, features, and budgets. The scope document details the list of activities for the successful completion of the project. The scope is defined by understanding the project requirements and the client's expectations.

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Project scope is a detailed outline of all aspects of a project, including all related activities, resources, timelines, and deliverables, as well as the project's boundaries.

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Will Jones, Pharoah is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a
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Total cost for 316 returns $3,962

Total cost for 408 returns $4,974

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