Question: A company has lost money in the past and has
A company has lost money in the past and has a $ 1.4 million NOL but expects to begin earning money again next year. Assuming future taxable income of $ 500,000 per year for the next three years, a statutory tax rate of 34 percent, and an after-tax discount rate of 6 percent, what is the company’s marginal tax rate during the NOL year if an election is made to carry forward the NOL?
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