Abstract
In this paper we evaluate an indivisible investment project that is carried out in a corporation under
very simple premises. In particular, we discuss a one-period model with certainty, the pure domestic
case and proportional tax rates. Surprisingly, the decision problem turns out to be rather complex if
one has to make allowance for different taxation of the corporation and its owner. Altogether there are
more than 10 cases that have to be distinguished if the firm's managers want to make a correct decision,
depending on the relation of personal and corporate tax rates.
Users
Please
log in to take part in the discussion (add own reviews or comments).