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A.1) Would you recommend this investment based on before tax EBIT? A.2) Would you still recommend this investment if after tax MARR is 8%? 4-
A.1) Would you recommend this investment based on before tax EBIT?
A.2) Would you still recommend this investment if after tax MARR is 8%?
4- A firm is considering investing $150,000 in a new manufacturing equipment generating the following cash flow income. The firm is planning to fully depreciate the asset in 5 years on a MACRS. The expected before tax MARR for this investment is 20%. A)- Would you recommend this investment based on before tax EBIT? B) Would you still recommend this investment if after tax MARR is 8% ? (An nninte)Step by Step Solution
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