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prepay_an_expense - Current deduction saves taxes now...

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Should you prepay an expense? enter information in yellow cells Tax year ending: December 31, 2009 Due date: April 10, 2010 Prepayment period in days: 100 Amount: $1,000.00 Tax rate: 30% Discount rate: 8.00% Net benefit of early deduction:
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Unformatted text preview: Current deduction saves taxes now 300.00 Give up deduction next year (277.78) 22.22 Pay out money now 1,000.00 Avoid payment (978.55) (21.45) 0.77 Net cost of making early payment: Net benefit (cost)...
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