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S13.6 - Calculate the after-tax rate of return based on a before-tax ROR and the effective tax rate Estimate the after-tax rate of return (ROR)
S13.6 - Calculate the after-tax rate of return based on a before-tax ROR and the effective tax rate Estimate the after-tax rate of return (ROR) for a project that has a before-tax ROR of 22%. Assume the company is in the 38% tax bracket and it used MACRS depreciation for an asset that has a $28,000 salvage value. The after-tax rate of return (ROR) is determined to be %
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