Answer:
e. 71 dollars
Explanation:
Peter was willing to but the wine for $45
In a year, there is an increase of $15 = $45 + $15 = $60
The interest rate of 10% of $60 = $6
Total = $66 ~ $70
Therefore, the amount he is willing to pay for the win if he buys it as investment would be 71 dollars.
<span>Tax shield is the saving in tax due to exemption of tax on interest expense = interest expense * tax rate
= $35 million * 36% = $ 12.6 million</span>
The benefits from eating one more bowl of ice cream to how much one more bowl of ice cream costs.
