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)

Answer rating: 100% (QA)

Rate of Return ROR To calculate the ROR we need to consider the cash flows over the projects life in... View the full answer