Question: Tucker Automotive is evaluating a project that will require it to use a part of its manufacturing plant to set up a line to

Tucker Automotive is evaluating a project that will require it to use

Tucker Automotive is evaluating a project that will require it to use a part of its manufacturing plant to set up a line to produce a new product. The plant space could be leased out for $150,000 a year. If Tucker's marginal tax rate is 20%, what is the annual cost to Tucker of using the plant space to produce the new product?

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