Multiple Choice
When evaluating project cash flows in a financial decision, __________.
A) Taxes can generally be ignored since they are a non-cash expense.
B) The financial manager should compute and use the marginal tax rate.
C) The marginal tax rate and average tax rate are of equal importance.
D) The financial manager should use the tax rate that is equal to the total tax liability divided by total taxable income.
E) Taxes are irrelevant unless income for the firm is greater than zero.
Correct Answer:
Verified
Correct Answer:
Verified
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