Bailey Inc

question 19

Multiple Choice

Bailey Inc.is planning a transaction that requires a $60,000 deductible cash expenditure.The transaction is structured so that Bailey will pay the cash and report the deduction this year (year 0) .Use Appendix A of your textbook provided to compute the increase in the NPV of the transaction if it can be restructured so that Bailey will report the deduction this year,but pay the cash three years later (year 3) .Bailey's marginal tax rate is 25%,and it uses a 9% discount rate to compute NPV.

• A)$8,677
• B)$9,014
• C)$9,480
• D)None of the above

---

Definitions:

Color-Blindness

An ideology that proposes disregarding racial characteristics when interacting with others, with the aim of reducing discrimination, although it's critiqued for ignoring systemic racial inequalities.

Cosmopolitanism

An ideology that all human beings belong to a single community, based on a shared morality, beyond individual nation-states or cultural identities.

Intersectionality

A framework for understanding how various aspects of a person's social and political identities (race, gender, class, sexuality, etc.) combine to create different modes of discrimination and privilege.

Pan-Ethnic Groups

Broad categories that group together smaller ethnic groups based on common cultural, geographic, or racial traits.