Sparks Company's SUTA rate for next year is 3.25% because its reserve ratio falls into the state's 10% to less than 12% category [(contributions - benefits paid) ÷ average payroll = $414,867 ÷ $3,521,790 = 11.78%]. If the next bracket (12% to less than 14%) would give the company a lower tax rate of 3.05%, what would be the least amount of the voluntary contribution needed to qualify the company for the 3.05% SUTA tax rate?

The Goodsmith Charitable Foundation, which is tax-exempt, issued debt last year at 10 percent to help finance a new playground facility in Los Angeles. This year the cost of debt is 30 percent higher; that is, firms that paid 12 percent for debt last year will be paying 15.60 percent this year.   If the Goodsmith Charitable Foundation borrowed money this year, what would the aftertax cost of debt be, based on their cost last year and the 30 percent increase? (Do not round intermediate calculations. Input the answer as a percent rounded to 2 decimal places.) If the receipts of the foundation were found to be taxable by the IRS (at a rate of 35 percent because of involvement in political activities), what would the aftertax cost of debt be? (Do not round intermediate calculations. Input the answer as a percent rounded to 2 decimal places.)

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Project A costs $5,300 and will generate annual after-tax net cash inflows of $1,900 for five years. What is the NPV using 5% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables) 2,928 x

113.

Your brother's business obtained a 30-year amortized mortgage loan for $175,000 at a nominal annual rate of 7.4%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for Year 1?   a. $1,645.03     b. $14,539.98     c. $12,950.00     d. $11,825.05     e. $12,894.95

Suppose that $100,000 is borrowed at 8 percent and is to be repaid in three equal annual installments. Prepare a debt amortization table and show that the net present value of the after-tax cash flows of the debt is zero using the after-tax cost of debt as the discount rate. The tax rate is 40 percent.

Am. 101.

Use the following information of the next 4 questions: Clayton Enterprise considers investing a total of $40,000 in Al automation. • This $40,000 will be 100% depreciated over the three-year life of the project. • The project will require an initial $10,000 investment in NWC and the tax rate is 20%. • At the end of the project's life, the fixed assets will be worth $20,000, and Clayton Enterprise will recover $8,000 that was tied up in working capital. • The OCF for the next 3 years is $32,000. Calculate the CFFA in Yr 0 O-40000 O-70000 O-60000 O-30000 -50000 Show Transcribed Text Calculate the CFFA in Yr 3: CFFA3 O 59000 O 57000 O 54000 O 56000 O 55000 O 58000

What is the equivalent annual cost in years 1 through 10.00 of a contract that has a first cost of $61,000 in year O and annual costs of $16,000 in years 3 through 10.00? Use an interest rate of 12.00% per year. (Round the final answer to three decimal places.) The equivalent annual cost is determined to be $ 42958 X