The NPV Function in Excel Takes the Cash Flow from Year

question 75

Short Answer

The NPV function in Excel takes the cash flow from year 0, which is referred to as value 1, and discounts the value by ____________________.

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Definitions:

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied according to an individual or entity's capacity to pay, generally implying that those with higher incomes should pay more tax.

Proportional Income Tax

A tax system where the tax rate remains constant regardless of the amount of income, thus taxing all income levels at the same percentage.

Horizontal Equity

The principle that individuals or entities in similar financial situations should be treated equally by the tax system or other public policies.

Tax Burdens

The total amount of taxes imposed on an individual or business by a government entity.