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This paper aims to develop decision models to evaluate tax-favored export entities under the Internal Revenue Code.

The Tax Aspects of Exportation: A Decision Model Approach.

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This paper aims to develop decision models to evaluate tax-favored export entities under the Internal Revenue Code.
Developed decision models considering cash flow patterns and time value of money.
Analyzed models using various levels of selected variables related to export taxation.
Examined break-even sales volume sensitivity to profit margin and cost of capital spread.
Identified sensitivity of break-even sales volume to profit margin assumptions.
Findings indicate a critical relationship between cost of capital and T-bill rate on profitability.
Exporters switching from a DISC to a FSC can enhance present value of after-tax profits during sales growth.

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Decision models determine optimal tax-favored export entities for maximizing profit in exporters.

Ernest R. Larkins (1991) studied this question.

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