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To Calculate the Initial Investment, We Subtract All Cash Inflows

question 77

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To calculate the initial investment, we subtract all cash inflows occurring at time zero from all cash outflows occurring at time zero.


Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the share of income paid in taxes.

Tax Deductible Donation

A Tax Deductible Donation is a contribution or gift to a qualifying organization where the donor can deduct the amount from their taxable income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

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