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where did the number 0.198x come from? Step1 Calculation of revenue to be earned by Bryan Bessner in order to meet all the costs and
where did the number 0.198x come from?
Step1 Calculation of revenue to be earned by Bryan Bessner in order to meet all the costs and allow for expected after-tax return. Let the revenue to be earned be "x" Then the statement of after-tax income can be shown as below: Now, his after tax income =10% * investment as he wants after tax return of 10% Therefore, the equation would be: 0.198x$471,000=10%$600,0000.198x=$60,000+$471,000x=$531,000/0.198x=$2,681,818 Therefore, revenue to be earned (x)=$2,681,818Step by Step Solution
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