Answer to Question #244923 in Civil and Environmental Engineering for Alan Enrico V Tuib

Question

After graduation, you have been offered an engineering job with a large company that has offices in Tennessee and Pennsylvania. The salary is $55,000 per year at either location. Tennessee’s tax burden (state and local taxes) is 6% and Pennsylvania’s is 3.07%. If you accept the position in Pennsylvania and stay with the company for 10 years, what is the FW of the tax savings? Your personal MARR is
10% per year.

Answer 1

Tax savings are defined as a reduction in the amount of tax to be paid by an individual or an organisation on its taxable income. Tax saving can be availed by investing in tax saving investments and other government circulated schemes.

The future worth of tax saving will be $\$9,901.86$ if I accept the position in Pennsylvania for 10 years.