Estimate the pre-tax return on capital

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Reference no: EM131815931

You estimate the pre-tax return on capital, by year and on average, for the project. You also, estimate the after-tax return on capital, by year and on average, for the project. If the firm faced a cost of capital of 12%, should it take this project? Select one: a. Yes, if the after-tax ROC is greater than 12% b. Yes, if the pre-tax ROC is greater than 12% c. No, if the pre-tax ROC is less than 12% d. Two of the above e. All of the above.

Reference no: EM131815931

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