Ch3 - Chapter 3 Taxes as Transaction Costs Objectives...

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Chapter 3 Taxes as Transaction Costs  Objectives Compute tax costs of income and tax savings  from deductions. Compute NPV of after-tax cash flows. Identify sources of tax uncertainty. Maximize after-tax values versus minimize  taxes. Tax planning in private market transactions. Distinguish arm’s length from related-party  transactions.
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Taxes as Transaction Cost Goal - MAXIMIZE AFTER-TAX values,  NOT MINIMIZE TAXES
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Time Value of Money Terminology Present Value Example Present Value of an Annuity  Example
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Time Value of Money - Terminology Time Value of Money:   a dollar  today  is worth more  than a dollar to be received in some future period.   Present value:   the value of a dollar today. Discount Rate the rate of interest on invested funds for the deferral period. As 
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Ch3 - Chapter 3 Taxes as Transaction Costs Objectives...

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