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Oksana_A [137]
3 years ago
6

If Julius has a 30% tax rate and a 10% after-tax rate of return, a $40,000 tax deduction in two years will save how much tax in

today's dollars? Use Exhibit 3.1. (Round present and future value amounts to 3 places)
Business
1 answer:
Tasya [4]3 years ago
7 0

Answer: $9,912.

Explanation: The easy way to calculate the answers as follows

$40,000 × .30 (tax rate) × .826 (Discount Factor, 10%, 2 years) = $9,912.

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3 years ago
You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery
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Answer: The expected loss is $2.3

Explanation:

Total number of tickets to be sold = 100 tickets

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four $25 prizes. the expected gain = 25 x (4/100) = $1

Expected gain (loss) = Total expected gain - Cost of the ticket

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The expected loss is $2.3

5 0
3 years ago
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Maggie and her family run a 600 acre farm in the Brazos Bottom. Her two crops are corn(x) and cotton(y). The farm’s revenue func
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Explanation:

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8 0
3 years ago
Which one of the following statements does NOT describe a problem with using ROE as a performance measure? A. ROE measures retur
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Answer:

B) ROE is a forward-looking, one-period measure, while business decisions span the past and present

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ROE is a forward-looking, one-period measure, while business decisions span the past and present, this statement does not describe a problem with using ROE as a performance measure.

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