Wilson Company has $100,000 in an investment paying 6% per annum. Each year Wilson incurs $1,200 of expenses related to this investment. Compute Wilson's annual net cash flow from this investment assuming the following.
Wilson's marginal tax rate is 10% and the annual expense is not deductible.Wilson's marginal tax rate is 35% and the annual expense is deductible.Wilson's marginal tax rate is 25% and one-half of the annual expense is deductible.

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The Answer of Wilson Company has $100,000 in an investment paying 6% per annum. Each year Wilson incurs $1,200 of expenses related to this investment. Compute Wilson's annual net cash flow from this investment assuming the following.
Wilson's marginal tax rate is 10% and the annual expense is not deductible.Wilson's marginal tax rate is 35% and the annual expense is deductible.Wilson's marginal tax rate is 25% and one-half of the annual expense is deductible.

Wilson Company Has $100,000 in an Investment Paying 6% Per