Question
44. Municipal bonds: primarily appeal to high tax-bracket investors. generally pay a higher pretax rate of return than corporate bonds. are issued only by local
44.
Municipal bonds:
primarily appeal to high tax-bracket investors.
generally pay a higher pretax rate of return than corporate bonds.
are issued only by local municipalities, such as a city or a borough.
are rarely callable.
pay interest that is exempt from all income tax.
69
Your firm is contemplating the purchase of a new $555,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $55,000 at the end of that time. You will save $285,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $70,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
IRR | % |
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