A Company Anticipates a Tax-Deductible Cash Expense of $10,000 in Year

question 6

Multiple Choice

A company anticipates a tax-deductible cash expense of $10,000 in year 2 of a project.The company's tax rate is 30%,and its discount rate is 8%.What is the approximate present value of this future cash outflow? Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $7,000.
• B) $6001.
• C) $3,000.
• D) $2,572.

---

Definitions:

Intellectual Capital Equation

A formula used to quantify the value of an organization's collective knowledge, including human, structural, and relational capital.

Competency

A combination of skills, knowledge, and behavior that is required to effectively perform specific tasks or roles within an organization.

Commitment

A pledge or obligation to do something, often requiring dedication and hard work, such as in a relationship or job.

Job Migration

What occurs when firms shift jobs from a home country to foreign ones.