How would the present value change under current law

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If Fargo Bank was expected to generate taxable income of $10 billion per year in the future, and its tax rate was 30 %, what was the present value of these acquired tax loss carryforwards given a cost of capital of 8 %? Get the instant assignment help. How would the present value change under current law which restricts the amount of the deduction to 80 % of pre-tax income?

Reference no: EM133983406

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