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

Question:

Kondex, a cash-basis sole proprietorsip, is considering paying $50,000 of expenses at the end of this year rather than waiting until next year. The owner of Kondex has a marginal tax rate for the current year of 35 percent but expects to be in the 24 percent marginal tax bracket next year. Kondex uses a 7 percent discount rate 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...

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