Ramos Company must choose between two alternate transactions. Transaction $1$ requires a $$20,000$ nondeductible cash outlay, while transaction $2$ requires a $$25,000$ deductible cash outlay. Determine the marginal

tax rate at which the after$-$tax costs of the two transactions are equal.

Multiple Choice

$15\%$

$20\%$

$25\%$

$30\%$