Consider the following investment: Initial cost - $145K Annual revenue = $50K ($50,000) Annual expenses $15K...
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Consider the following investment: Initial cost - $145K Annual revenue = $50K ($50,000) Annual expenses $15K Useful Life = 10 Years Depreciation life = 10 Years Depreciation method: Straight Line Salvage value = $0 MARR = 18% Tax Rate = 40% What is the rate of return (in %) for this project? (provide your answer in the box using xx % format; e.g., 5%) Does this project earn the MARR after considering income taxes? (provide your answer and justification in your pdf file submission) Consider the following investment: Initial cost - $145K Annual revenue = $50K ($50,000) Annual expenses $15K Useful Life = 10 Years Depreciation life = 10 Years Depreciation method: Straight Line Salvage value = $0 MARR = 18% Tax Rate = 40% What is the rate of return (in %) for this project? (provide your answer in the box using xx % format; e.g., 5%) Does this project earn the MARR after considering income taxes? (provide your answer and justification in your pdf file submission)
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Rate of Return ROR To calculate the ROR we need to consider the cash flows over the projects life in... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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