XPO Corporation Has a Minimum Tax Credit of $50,000 from 2017

question 88

Multiple Choice

XPO Corporation has a minimum tax credit of $50,000 from 2017. XPO's tax liability before any MTC carryover is $30,000. What is XPO's minimum tax credit carryover to 2019, if any?

• A) $50,000.
• B) $20,000.
• C) $10,000.
• D) $0.

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Definitions:

WACC

This metric, known as the Weighted Average Cost of Capital, calculates a business's cost of capital by assigning weights proportionally to each type of capital.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.

IRR

The Internal Rate of Return is a metric used in financial analysis to estimate the profitability of potential investments.

MIRR

The modified internal rate of return; a measure of profitability that adjusts for the cost of capital and project scale.