Kondex, a cash-basis corporation, is considering paying $50,000 of expenses at the end of this year rather

Question:

Kondex, a cash-basis corporation, is considering paying $50,000 of expenses at the end of this year rather than waiting until next year. Kondex's marginal tax rate for the current year is 25 percent but it expects to be in the 34 percent marginal tax bracket next year. Kondex uses a 7 percent for evaluation purposes. Should Kondex pay the expenses at the end of the current year?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...