subject
Business, 01.04.2021 15:10 kenziechalkprincess2

E1-13: A business taxpayer is considering two mutually exclusive alternatives. Alternative A is to hire a tax accountant at a cost of $20,000 to research the tax law on a tax-avoidance plan. If successful, the plan would save the taxpayer $21 ,000 in taxes. The probability of success is estimated to be 75%. Alternative B is to hire a marketing firm at a cost of $18,000, whose task would be to develop a marketing plan for the taxpayer's product. If successful, the plan would reduce other advertising costs by $25,000 without affecting sales revenue. The probability of success is estimated at 80%. Which alternative should the taxpayer choose if he or she faces a tax rate of 15%

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 21:30, SG2021
Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business. the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?
Answers: 1
image
Business, 22.06.2019 03:00, nyceastcoast
How does having a flexible mind you become a better employee? a. it you become more honest toward work. b. it you become a team player. c. it you learn new things that will better your performance. d. it you to finish your work on time. e. it you reach work on time
Answers: 1
image
Business, 22.06.2019 07:00, ronnie7898
Amarket that consists of all possible consumers regardless of their specific needs or wants is a
Answers: 1
image
Business, 22.06.2019 11:50, Paytonsmommy09
Which of the following does not offer an opportunity for timely content? evergreen content news alerts content that suits seasonal consumption patterns content that matches a situational trigger content that addresses urgent pain points
Answers: 2
You know the right answer?
E1-13: A business taxpayer is considering two mutually exclusive alternatives. Alternative A is to h...

Questions in other subjects:

Konu
English, 08.09.2021 16:40