A corporation has an average tax rate of 25% and a marginal tax rate of 39%. The corporation can invest in a tax-free project with an expected before tax return of 6.8% or in a taxable project with an expected before-tax return of 10%. The corporation should on Select one: Invest in the tax-free project because the after-tax return is greater b. Invest in the taxable project because the after-tax return is greater C. Invest in the taxable project because the sun is greater de Be indifferent between the two investments because the after-tax returns are the same. Previous page Next page