Question

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?

Answer 1

The after-tax MARR is 14.49%

Step-by-step 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%