Computations

Consider the example described in the section The Compute Menu. To create the earnings, follow these steps:

Select Investment $\rightarrow$ New $\rightarrow$ Generic Cashflow to create a generic cashflow.
Enter CD_INTEREST for the Name.
Enter 1200 for each of the five years starting one year from today as displayed in Figure 57.2.
Click OK to return to the Investment Analysis dialog box.

Figure 57.2: Computing the Interest on the CD

To compute the tax on the earnings, follow these steps:

Select CD_INTEREST from the Portfolio area.
Select Compute $\rightarrow$ After Tax Cashflow from the pull-down menu.
Enter 30 for Federal Tax.
Enter 7 for Local Tax. Note that Combined Tax updates.
Click Create After Tax Cashflow. The After Tax Cashflow area fills, as displayed in Figure 57.3.

Figure 57.3: Computing the Interest After Taxes

Save the taxed earnings to a SAS data set named WORK.CD_AFTERTAX. Click Return to return to the Investment Analysis dialog box.