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Hyundai is considering opening a plant in two neighboring states. Option 1 : One state has a corporate tax rate of 1 0 percent. If
Hyundai is considering opening a plant in two neighboring states.
Option : One state has a corporate tax rate of percent. If operated in this state, the plant is expected to generate $ pretax profit.
Option : The other state has a corporate tax rate of percent. If operated in this state, the plant is expected to generate $ of pretax profit.
Required:
a What is the afterstatetaxes profit in the state with the tax rate?
b What is the afterstatetaxes profit in the state with the tax rate?
c Which state should Hyundai choose?
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