Acme Manufacturing makes their preliminary economic studies using a before-tax MARR of 18%. More detailed studies are

Question:

Acme Manufacturing makes their preliminary economic studies using a before-tax MARR of 18%. More detailed studies are performed on an after-tax basis. If their effective tax rate is 40%, the after-tax MARR is

(a) 6%

(b) 7%

(d) 13%

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...

Fantastic news! We've Found the answer you've been seeking!