Which of the Following Accounts for the Largest Source of Tax

question 154

Multiple Choice

Which of the following accounts for the largest source of tax receipts for the U.S.federal government?

• A) excise tax
• B) corporate income tax
• C) Social Security tax
• D) individual income tax

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

Cost of Capital

The rate of return a firm needs to generate on its investment initiatives to preserve its market value and appeal to investors.

Cash Flows

The combined total of cash inflows and outflows in a company, significantly impacting its liquid assets.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.