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3. A special power tool for plastic products (3-year property class) costs $400,000 and yields an EUAB of $200,000 over its 4-year useful life, with
3. A special power tool for plastic products (3-year property class) costs $400,000 and yields an EUAB of $200,000 over its 4-year useful life, with no salvage value. a) Compute the before-tax rate of return. b) Compute the after-tax rate of return, based on MACRS depreciation and a 34% corporate income tax rate
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