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Business, 01.12.2021 02:10 Galaxystyx

A special power tool for plastic products costs $400,000 and has a 4- year useful life, no salvage value, and a 2-year before-tax payback period. Assume uniform annual end-of-year benefits. (a) Compute the before-tax rate of return. (b) Compute the after-tax rate of return, based on MACRS depreciation and a 24% combined corporate income tax rate.

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