One year, a company makes a P5,065 investment in a historic building. The investment is not depreciable, but it does qualify for a one-time 20% of investment amount as tax credit. In that same year, revenue is P46,346 and expenses (exclusive of the investment cost) are 40% of revenue. The company pays a total of 53% in income taxes. What is the after-tax present worth of this year's activities if the company's interest rate for investmen is 10% (only 4 significant digits are required in the answer, no units required).

One year, a company makes a P5,065 investment in a historic building. The investment is not depreciable, but it does qualify for a one-time 20% of investment amount as tax credit. In that same year, revenue is P46,346 and expenses (exclusive of the investment cost) are 40% of revenue. The company pays a total of 53% in income taxes. What is the after-tax present worth of this year's activities if the company's interest rate for investmen is 10% (only 4 significant digits are required in the answer, no units required).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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