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12 Company X is considering two investment options. Both options require an investment-$400,000 Option 1: Expected rate of return 12.0%, tax rate - 20.0% Option
12 Company X is considering two investment options. Both options require an investment-$400,000 Option 1: Expected rate of return 12.0%, tax rate - 20.0% Option 2: Expected rate of return -9.0%, tax rate=25.0 % Compute the DIFFERENCE in before tax income between the two options O Option 1 exceeds Option 2 by $14,000 O Option 1 exceeds Option 2 by $12,000 O None of the other answers are correct O Option 1 exceeds Option 2 by $10,000 O Option 2 exceeds Option 1 by $10,000) 10 pts 10 pts
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