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QUESTION 1 10 point XYZ is evaluating a project that would require the purchase of a piece of equipment for $420,000 today. D
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Answer #1
Revenue 780000
(-) Cost 210000
(-) Depreciation 130000
EBIT 440000
(-) Interest 30000
EBT 410000
(-) Net income 322000
Taxes 88000
Tax rate = Taxes / EBT = 88000 / 410000 21.46%
Answer : Option d [ A rate equal to or greater than 20.00% but less than 25.00% ]
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