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Consider the data given below for two alternative investments -Thing-2 and Thing-2. Compare these alternatives on an after-tax basis and offer a recommendation. Assume repeatability
Consider the data given below for two alternative investments -Thing-2 and Thing-2. Compare these alternatives on an after-tax basis and offer a recommendation. Assume "repeatability" as discussed in class. Use the Future Worth Method to make this comparison. Use an after-tax MARR of 25%, a tax rate on ordinary income of 50%, and a tax rate of 15% on capital gains. Now assume that the study period is set at five years (co-termination assumption), and that the before-tax market value of Bigger One at that time (end of year five) is $2, 500,000 Again, compare the alternatives on an after-tax basis and offer a recommendation
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