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Calculate the net present value of the future tax savings

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Question - Chris and Becky organized a new business as a corporation in which they own equal interests. The new business generated a $65,000 operating loss for the year.

Assume the corporation expects to generate $500,000 of income next year and has a 21 percent tax rate. Calculate the net present value of the future tax savings associated with the current year operating loss, using a 4 percent discount rate.

Reference no: EM133031019

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