Essay
If a firm tax rate is 40 percent what would your answer be? Now taxes are 40 percent of profits.Accounting break-even is unchanged, since taxes are zero when profits = 0.
To find NPV break-even, recalculate cash flow.
CF = (1 - T) (Revenue - Cash Expenses) + T * Depreciation
= .60 (.25 * Sales - 2000) + .40 *600
= .15 * Sales - 960
Correct Answer:
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The annuity factor is 3.7908, ...View Answer
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Correct Answer:
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