Senator paula stevens wants to revise the investment tax, Ask an Expert

Economics

Senator Paula Stevens wants to revise the investment tax credit. If most firms use an interest rate of 15% and are taxed at 34%, which plan is more attractive to them? Plan A allows a 10% credit with a 10-year MACRS schedule. Plan B allows a 7% credit with a 5-year MACRS schedule. For both plans, the credit is subtracted from the basis for depreciation.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92638517

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