Research equipment and has projected the benefits

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Reference no: EM131810351

A corporation with a 34% combined income tax rate is considering the following investment in research equipment and has projected the benefits as follows.

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Prepare an after-tax cash flow table assuming MACRS depreciation.

(a) What is the after-tax rate of return?

(b) What is the before-tax rate of return?

Reference no: EM131810351

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