Question
if the Cost of Capital pre-tax is 12.6% and the corporate tax is 33%, then project is profitable. As long as the rate is 8.1%
if the Cost of Capital pre-tax is 12.6% and the corporate tax is 33%, then project is profitable.
As long as the rate is 8.1% or less
Never Profitable
As long as the rate is 8.8% or above
Always Profitable
1. What is the Cut off rate
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
