Use the Following Information to Answer the Question(s)below

question 71

Multiple Choice

Use the following information to answer the question(s) below.
Really Big Conglomerate (RBC) is considering acquiring POP,Inc.a smaller unsuccessful Internet firm.POP has outstanding tax loss carry forwards of $320 million from losses over the past six years.RBC has pre-tax income of $100 million per year,a cost of capital of 10%,and pays 35% in taxes.
-If RBC acquires POP,in what year will RBC be required to pay corporate taxes again?

• A)2 years
• B)3 years
• C)4 years
• D)5 years

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Definitions:

Sensory Registers

The initial process where sensory information is stored very briefly before it is processed further or discarded.

Encoding

The process of converting information into a form that can be stored in memory, such as transforming thoughts into a sequence of words.

Attention

The cognitive process of concentrating on one aspect of the environment while ignoring other stimuli.

Sensory Store

The initial process of storing sensory information after it is received, lasting for a very brief period.