Compute the before tax rate of return

Reference no: EM13199515

A special power tool for plastic produces costs 400, has a 4 year useful life, no salvage value and a 2-year-before tax payback period. Assume uniform annual end of the year benefits.
A. Compute the before tax rate of return
B. Compute the tax rate of return, based on MACRS depreciation and a 34% combined corporate income tax rate.

Reference no: EM13199515

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