1. For a firm facing a marginal income tax rate of 34 percent, what is the after-tax cash-flow effect of:
(a) a $1,000 increase in contribution margin during the year, and (b) a $500 increase in cash operating expenses?
2. What is the present value of $1,000 to be received two years from now, if the discount rate is:
(a) 10 percent, (b) 14 percent, and (c) 20 percent? Use both the appropriate table in the text (Appen- dix C, Table 1) and the appropriate function in Excel to answer these questions.
Text Book- Cost Management - A strategic Emphasis| 6th edition.