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The company's marginal tax rate is 24%. What is the after-tax rate of return? An asset with 5-year MACRS life will be purchased for $10,000.

The company's marginal tax rate is 24%. What is the after-tax rate of return? An asset with 5-year MACRS life will be purchased for $10,000. It will produce net annual benefits of $2000 per year for 6 years, after which time it will have a net salvage value of zero and will be retired.
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