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Discussion :: Engineering Economics

  1. A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

    2. A.

     12.07 %
    B.

     12.34 %
    C.

     12.67 %
    D.

     12.87 %

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    Answer : Option A

    Explanation :

    Explanation Not Provided

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