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Misha Larkins [42]
3 years ago
13

Acme Manufacturing makes their preliminary economic studies using a​ before-tax MARR of 21​%. More detailed studies are performe

d on an​ after-tax basis. If their effective tax rate is 31​%, what is the​ after-tax MARR?
Business
1 answer:
drek231 [11]3 years ago
7 0

Answer:

The after-tax MARR is 14.49%

Explanation:

before tax MARR = 21%

effective tax rate = 31%

after tax MARR = before tax MARR*(1-tax rate)

                         = 21%*(1 - 0.31)

                         = 14.49%

Therefore, The after-tax MARR is 14.49%

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