What is the after-tax cost of this expenditure

Reference no: EM13263555

GMX Resources, an independent oil and gas exploration and production company, has a tax rate of 38%. If it purchases $2,000,000 of drilling pipe, what is the after-tax cost of this expenditure?

a. $760,000
b. $1,240,000
c. $2,000,000
d. $2,760,000

Reference no: EM13263555

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