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A firm expects to receive $32,000 each year for 15 years from sales of a product. An initial investment of $160,000 will be required to
A firm expects to receive $32,000 each year for 15 years from sales of a product. An initial investment of $160,000 will be required to manufacture the product. Expenses will run $7,530 per year. Salvage value is $10,000, and straight-line depreciation is used. The income tax rate is 48%. What is the after-tax rate of return?
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