QUESTIONS 1. Table 1 contains the complete cash flow analysis based on GP Manufacturing’s basic information. Explain the inputs into 1) the net initial investment outlay at year 0, 2) the depreciation tax savings in each year of the project’s economic life, and 3) the project’s incremental cash flows? 1. Net initial investment outlay is $302,040.
c. Suppose government imposes a tax equal to the marginal external cost. What is the equilibrium price paid by consumers and the equilibrium quantity after implementation of the tax? d. At the output level in part (c), how much is the tax? e. How much tax revenue does government collect? f. What is the deadweight loss borne by society if the externality is left uncorrected?
ii. Calculate the new equilibrium price and quantity with the tax imposed. iii. Outline the distribution of the tax, i.e. calculate the tax paid by the consumer and by the club.
(0.5 points) Credit is a commitment to pay for something in the future, instead of paying for it right away 2. What is a credit score? (0.5 points) Your credit score is a number that tells lenders how likely you are to make payments on time. 3. What is installment credit?
Bii Describe the information which needs to be shown on your pay slip/statement. Payment This will be what you have earned whether paid weekly or every four weeks. It will be the total for that pay period you have already worked. Tax Tax is paid depending on how much you have earned it will show on your payslip if you have or haven’t paid tax. National insurance National insurance is also paid depending on how much you earn (it’s different if you are self-employed) and it will be shown on your pay slip.
B. (1994). America: who really pays the taxes?. New York: Simon & Schuster. Provides stats about who really pays taxes in America.
QUESTIONS 1. Table 1 contains the complete cash flow analysis based on GP Manufacturing’s basic information. Explain the inputs into 1) the net initial investment outlay at year 0, 2) the depreciation tax savings in each year of the project’s economic life, and 3) the project’s incremental cash flows? 2. What is the project’s NPV?
You have an income limit with new contributions. (The income limit only applies to new contributions in the Roth IRA). You pick up the ordering rules. (This is where accounting and bookkeeping could become very important). Business Involvement in a Roth 401k.
Week 8 : Final Week - Final Exam Page 1 1. (TCO C) Which of the following characteristics do intangible assets possess? (Points : 5) Physical existence Claim to a specific amount of cash in the future Long-lived Held for resale 2. (TCO C) The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be (Points : 5) charged off in the current period. amortized over the legal life of the purchased patent.
What are the firm’s income tax liability and its after-tax income? What are the company’s marginal and average tax rates on taxable