Problem
Senator Paula Stevens wants to revise the investment tax credit. If most firms use an interest rate of 15% and are taxed at 34%, which plan is more attractive to them? Plan A allows a 10% credit with a 10-year MACRS schedule. Plan B allows a 7% credit with a 5-year MACRS schedule. For both plans, the credit is subtracted from the basis for depreciation.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.