Problem $03-12($Algo$)[$LO $3-3]$

Firm E must choose between two alternative transactions. Transaction $1$ requires a $$10,300$ cash outlay that would be nondeductible in the computation of taxable income. Transaction $2$ requires a $$15,300$ cash outlay that would be a deductible expense.

Required:

a$.$ Determine the after$-$tax cost for each transaction. Assume Firm E$\text{'}$s marginal tax rate is $15$ percent.

b$.$ Determine the after$-$tax cost for each transaction. Assume Firm E$\text{'}$s marginal tax rate is $35$ percent.

Complete this question by entering your answers in the tabs below.

Determine the after$-$tax cost for each transaction. Assume Firm E$\text{'}$s marginal tax rate is $15$ percent.

Note: Negative amounts should be indicated by a minus sign.

$\backslash$table$[[,$Transaction $1,$Transaction $2],[$After$-$tax cost,,$]]$