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Suppose that the initial cost of an investment is $310,000, the present value of tax saving from depreciation is $10,510.53, and the present value after
Suppose that the initial cost of an investment is $310,000, the present value of tax saving from depreciation is $10,510.53, and the present value after tax terminal value is $185,573.74. If the pretax discount rate is 16%, the marginal tax rate is 28%, what is the break even after-tax net returns if the investment is sold in 3 years?
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