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Company P must choose between two alternate transactions. The cash generated by Transaction 1 is taxable, and the cash generated by Transaction 2 is

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Company P must choose between two alternate transactions. The cash generated by Transaction 1 is taxable, and the cash generated by Transaction 2 is nontaxable. Required: a. Determine the marginal tax rate at which the after-tax cash flows from the two transactions are equal assuming that Transaction 1 generates $127,000 of income and Transaction 2 generates $95,250 of income. b. Determine the marginal tax rate at which the after-tax cash flows from the two transactions are equal assuming that Transaction 1 generates $237,000 of income and Transaction 2 generates $177,750 of income. Complete this question by entering your answers in the tabs below. Required A Required B Determine the marginal tax rate at which the after-tax cash flows from the two transactions are equal assuming that Transaction 1 generates $127,000 of income and Transaction 2 generates $95,250 of income. Marginal tax rate % < Required A Required B >

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