自制note chapter 3.docx

自制note chapter 3.docx - Part Two Fundamentals of Tax...

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Part Two: Fundamentals of Tax Planning Chapter Three: Taxes as Transaction costs Learning objectives LO 3-1. Compute a transaction’s net present value (NPV). LO 3-2. Compute the tax cost of an income item and the tax savings from a deduction. LO 3-3. Integrate tax costs and savings into NPV calculations. LO 3-4. Identify the uncertainties concerning future tax costs and savings. LO 3-5. Explain why tax minimization may not be the optimal business strategy. LO 3-6. Explain why bilateral tax planning is important in private market transactions. LO 3-7. Distinguish between arm’s-length and related party transactions. 一、 THE ROLE OF NET PRESENT VALUE IN DECISION MAKING (一) Quantifying Cash Flows Net Cash Flow: the difference between cash received and cash disbursed (二) The Concept of Present Value Time value of money discount rate net present value (NPV) 1 Present Value 2 Present Value of Annuity ( 年金 ) Annuity: A cash flow consisting of a constant dollar amount available at the end of the period for a specific number of equal time periods.
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  • Fall '16
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  • Taxes

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