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26 February, 13:00

Acme Manufacturing makes their preliminary economic studies using a before-tax MARR of 17 %. More detailed studies are performed on an after-tax basis. If their effective tax rate is 22 %, what is the after-tax MARR?

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  1. 26 February, 14:56
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    The after-tax MARR is 13.26%

    Explanation:

    After - tax MARR = Before tax MARR * (1 - tax rate)

    = 17% * (1 - 22%)

    = 13.26%

    Therefore, The after-tax MARR is 13.26%
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