Ask Question
10 July, 21:57

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?

+4
Answers (1)
  1. 11 July, 00:52
    0
    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%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Acme Manufacturing makes their preliminary economic studies using a before-tax MARR of 21 %. More detailed studies are performed on an ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers