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Tax credit that reduces the price of the investment

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Reference no: EM132538585

Imagine that a $30,000 investment in a good is expected to return you $25,000, and your marginal tax rate is 30%. The government is considering an investment tax credit that reduces the price of the investment. How large would the percentage reduction in the price of the investment have to be for you to make this investment?

Reference no: EM132538585

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