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OPPORTUNITY COST, DISCOUNTING, AND DEFERRED TAX LIABILITIES: A FINAL NOTE
Author(s) -
Findlay M. C.,
Williams E. E.
Publication year - 1985
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1985.tb00778.x
Subject(s) - economics , deferred tax , discounting , argument (complex analysis) , tax basis , tax credit , actuarial science , tax reform , public economics , monetary economics , state income tax , finance , gross income , medicine
A decade of discussion regarding deferred tax liabilities has been narrowed to the question of whether pre‐ or post‐tax discount rates should be employed. A recent article has once again presented the case for pre‐tax rates. This note raises problems with that argument and presents an alternative case for the use of post‐tax rates of discount.