1. In 2008, XYZ Company had $1,535,000 in revenues and $1,200,000 in expenses. According to the Corporate Income Tax Table, what are the average and marginal tax rates respectively? (Round to nearest whole percent)

a) 30% average, 39% marginal

b) 34% average, 39% marginal

c) 21% average, 34% marginal

d) 23% average, 34% marginal

2. The constant dollar cash flow is $35,000 10 years from now. What is the Actual dollar equivalent today? (f=4%, i=10%)

a) $12,278

b) $35,000

c) $44,407

d) $53,700