1. If the federal tax rate is 36% and the state tax rate is 7%, the effective tax rate is closest to
31.8%
35.4%
37.3%
40.5%
2. A firm receives the following cash flows: year 1 = $400 million, year 2 = 350 million, year 3 = $400 million. This series of cash flows can be defined as a(n)
A) annuity
B) mixed stream
C) single sum
D) equal, periodic cash flows
E) present value