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A taxpayer is considering two mutually exclusive alternatives: Alternative A is to hire a tax planner for $20,000, who, if successful (@75% probability), would save
A taxpayer is considering two mutually exclusive alternatives: Alternative A is to hire a tax planner for $20,000, who, if successful (@75% probability), would save the taxpayer $21,000. Alternative B is to hire a marketing consultant for $18,000 to change the advertising strategy, which, if successful (@80% probability) would reduce advertising costs by $25,000 without affecting revenue. At what whole number (e.g. 15%) tax rate between 15% and 35% are the alternatives closest to each other (about $100 diff
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