Firm E must choose between two alternative transactions. Transaction $1$ requires a $$9,950$ cash outlay that would be nondeductible in the computation of taxable income. Transaction $2$ requires a $$12,400$ cash outlay that would be a deductible expense.

Required:

Determine the after$-$tax cost for each transaction. Assume Firm E$$s marginal tax rate is $10$ percent.

Determine the after$-$tax cost for each transaction. Assume Firm E$$s marginal tax rate is $30$ percent.