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1. A special power tool for plastic products costs $400,000 and has a four-year useful life, no salvage value, and a two-year pretax payback period.

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1. A special power tool for plastic products costs $400,000 and has a four-year useful life, no salvage value, and a two-year pretax payback period. Assume uniform benefits and the end of year convention. Find the after-tax rate of return. Use a MACRS THREE-YEAR depreciation schedule and a tax rate of 22.58%

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