Assuming a 1-year, money market account investment at 3.98 percent (APY), a 3.13% inflation rate, a 10 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 3.98 percent (APY), a 10 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is%. (Round to two decimal places.)

Assuming a 1-year, money market account investment at 3.98 percent (APY), a 3.13% inflation rate, a 10 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 3.98 percent (APY), a 10 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is%. (Round to two decimal places.)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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