Question: A firm must choose between two projects A and B, shown below. Their effective income tax rate is 37% and both projects are depreciated using

A firm must choose between two projects A and B, shown below. Their effective income tax rate is 37% and both projects are depreciated using a MACRS GDS recovery period (Table 7-3) of 5 years and have useful lives of 8 years. If the better tax MARR is 19%, select the better project using after-tax analysis and the external rate of return method

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