The amortization of flotation costs reduces taxes and thus provides an annual cash flow. What will the net increase or decrease in the annual flotation cost tax savings be if refunding takes place?
A) $6,480
B) $7,200
C) $8,000
D) $8,800

Question

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The Answer of The amortization of flotation costs reduces taxes and thus provides an annual cash flow. What will the net increase or decrease in the annual flotation cost tax savings be if refunding takes place?
A) $6,480
B) $7,200
C) $8,000
D) $8,800

The Amortization of Flotation Costs Reduces Taxes and Thus Provides