Question

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?

Answer 1

The after-tax MARR is 13.26%

Step-by-step explanation:

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

= 17%*(1 - 22%)

= 13.26%

Therefore, The after-tax MARR is 13.26%