Required 1. Prepare a Present Value Comparison using PV formulas
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required
1. Prepare a Present Value Comparison using PV formulas
(HINT: Do not enter an amount for PMT in the PV formula as there are no cash flows
involved with this tax liability; instead, use FV)
I really need help with the excel formulas and equations shown in the spaces in the attachments.
11 Required:
12 1. Prepare a Present Value Comparison using PV formulas
13
14 (HINT: Do not enter an amount for PMT in the PV formula as there are no cash flows involved with this tax liability; instead, use FV)
15
16
17
Description
18 Time Incurred (hours)
19 Hourly Billing Rate
20 Taxable Income
21 Marginal Tax Rate
22 Tax Liability
23 Present Value Tax Liability
24 After-tax Cash Flow
25
Before-tax income
26 Less: Present Value Tax Liability
27 After-tax cash flow
28
29
Present Value Comparison
Option 1:
Receive Payment
Before 12/31
Option 2:
Receive Payment After
12/31
120.00
$100.00
120.00
$100.00
28%
28%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd42b29c4-7272-4173-b1c2-2b6561413ec7%2F7192a299-ab88-4b4c-a8c3-4cde7d070d32%2F3tabd_processed.png&w=3840&q=75)
Transcribed Image Text:Required
1. Prepare a Present Value Comparison using PV formulas
(HINT: Do not enter an amount for PMT in the PV formula as there are no cash flows
involved with this tax liability; instead, use FV)
I really need help with the excel formulas and equations shown in the spaces in the attachments.
11 Required:
12 1. Prepare a Present Value Comparison using PV formulas
13
14 (HINT: Do not enter an amount for PMT in the PV formula as there are no cash flows involved with this tax liability; instead, use FV)
15
16
17
Description
18 Time Incurred (hours)
19 Hourly Billing Rate
20 Taxable Income
21 Marginal Tax Rate
22 Tax Liability
23 Present Value Tax Liability
24 After-tax Cash Flow
25
Before-tax income
26 Less: Present Value Tax Liability
27 After-tax cash flow
28
29
Present Value Comparison
Option 1:
Receive Payment
Before 12/31
Option 2:
Receive Payment After
12/31
120.00
$100.00
120.00
$100.00
28%
28%
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