Once Set for a Year, When Might the IRS Change

question 47

Essay

Once set for a year, when might the IRS change the rate for the automatic mileage method?

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Cash Inflows

Money received by a company during a given period, including revenues, investment returns, loans, and other forms of financing.

Payback Period

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment itself.

Straight-line Basis

Straight-line basis is a method of calculating depreciation and amortization, wherein an asset's cost is evenly spread over its useful life.