What are the after tax present worth

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Reference no: EM131555331

A company borrows $200,000 at 12% compounded annually to buy new equipment for its warehouse. The company will repay the loan over 5 years with 5 equal payments of principle and will pay the interest accrued each year at the end of the year. Interest payments are tax deductible. The income tax rate is 38% and the before tax MARR is 15%. What are the after tax present worth?

Reference no: EM131555331

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