THE ENTERPRISE INVESTMENT DECISIONS UNDER THE INFLUENCE OF TAX FACILITIES
THE ENTERPRISE INVESTMENT DECISIONS UNDER THE INFLUENCE OF TAX FACILITIES

Summary/Abstract: This paper analyzes the impact of tax facilities on the investment decision making process. We study this aspect for an enterprise investment decision, taking into account some tax facilities as the accelerated depreciation, 50% reduction of the corporate tax for the reinvested profit, deduction of 20% from the input value of fixed assets, tax exemption for reinvested profit and the diminishing of corporate tax rate. For each case, we calculate the investment efficiency indicators (NPV, IRR) and the net present value of cash flow and we determine which of these facilities is more efficient (advantageous) for the enterprise. Finally, we conclude that public financial decisions on corporate tax have a great impact on the decision of choosing between investment alternatives and on the enterprise performance.

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