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MrAnd MrsRath Invested in a Business That Will Generate the Following

Question 56

Multiple Choice

Mr.and Mrs.Rath invested in a business that will generate the following cash flows over a three-year period.Use Appendix A. Mr.and Mrs.Rath invested in a business that will generate the following cash flows over a three-year period.Use Appendix A. If the Raths' marginal tax rate over the three year period is 20% and they use a 6% discount rate,compute the NPV of the transaction. A) $59,340 B) $55,996 C) $50,413 D) None of the above. Mr.and Mrs.Rath invested in a business that will generate the following cash flows over a three-year period.Use Appendix A. If the Raths' marginal tax rate over the three year period is 20% and they use a 6% discount rate,compute the NPV of the transaction. A) $59,340 B) $55,996 C) $50,413 D) None of the above. If the Raths' marginal tax rate over the three year period is 20% and they use a 6% discount rate,compute the NPV of the transaction.


A) $59,340
B) $55,996
C) $50,413
D) None of the above.

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