Return annual benefit for six years with salvage value

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Reference no: EM131594616

A $10,000 investment will return annual benefit for six years with a salvage value of $3,000 at the end of six years in todays dollars. Assume MACRS depreciation and a 34% tax rate and the inflation rate is 5%. What is the inflation free after tax rate of return on the investment if the annual benefits are $4, 918 in today's dollars?

Reference no: EM131594616

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