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The Before-Tax MARR Is

Question 4

Multiple Choice

The before-tax MARR is


A) higher than the after-tax MARR by a factor of (1 - t) , where t is the corporate tax rate.
B) lower than the after-tax MARR by a factor of (1 - t) , where t is the corporate tax rate.
C) higher than the after-tax MARR by a factor t, where t is the corporate tax rate.
D) lower than the after-tax MARR by a factor t, where t is the corporate tax rate.
E) approximately equal to the after-tax MARR.

Correct Answer:

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