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30 September, 02:27

Acme Manufacturing makes their preliminary economic studies using a before-tax MARR of 21 %. More detailed studies are performed on an after-tax basis. If their effective tax rate is 31 %, what is the after-tax MARR?

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  1. 30 September, 05:45
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    The after-tax MARR is 14.49%

    Explanation:

    before tax MARR = 21%

    effective tax rate = 31%

    after tax MARR = before tax MARR * (1-tax rate)

    = 21% * (1 - 0.31)

    = 14.49%

    Therefore, The after-tax MARR is 14.49%
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