Question: Zipp Corp. is considering a project that will require $700,000 in assets. The project will be financed with 100% equity. The company faces a tax

Zipp Corp. is considering a project that will require $700,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 40%.

Determine what the projects Roe will be if its EBIT is -$60,000. When calculating the tax effects, assume that Ziff Corp as a whole will have a large, positive income this year. Please show work.

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