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4) A firm is considering the following investment project. Assume a 5-year property for MACRS Before-Tax Cash Flow Year (thousands) 0 - 100,000 +35,000 +35,000

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4) A firm is considering the following investment project. Assume a 5-year property for MACRS Before-Tax Cash Flow Year (thousands) 0 - 100,000 +35,000 +35,000 +35,000 +35,000 5 +35,000 The income tax rate is 21%. If the firm requires a 10% after-tax rate of return, should the project be undertaken? MACRS depreciation will be used

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