Use the Following Tax Table to Answer This Question $\quad$

question 29

Multiple Choice

Use the following tax table to answer this question: $\quad$$\quad$$\text { Taxable Income}$ $\quad$$\text { Tax Rate}$
$\begin{array}{|r|r|c|}\hline \$ 0- & 50,000 & 15 \% \\\hline 50,001- & 75,000 & 25 \\\hline 75,001- & 100,000 & 34 \\\hline 100,001- & 335,000 & 39 \\\hline 335,001- & 10,000,000 & 34 \\\hline\end{array}$ Comfy Inn earned $218,310 in taxable income for the year.How much tax does the company owe?

• A)$86,311.20
• B)$85,140.90
• C)$68,390.90
• D)$69,998.20
• E)$65,240.10

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Definitions:

Required Rate Of Return

This is the minimum rate of return on an investment that an investor deems acceptable, taking into account the investment's risk level and opportunity costs.

Capital Budgeting

The process of planning and managing a company's long-term investments in major assets.

Investment Required

The total amount of capital needed to undertake a specific project, purchase, or investment.

Project Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future cash flows by the initial investment cost.