Solution-Assume 50% tax and depreciation on straight line

Assume 50% tax and depreciation on straight line basis.

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Question: A Project will cost $40000. Its stream of earning before depreciation and taxes (EBDIT) during first year through five years will be $10000,$12000,$14000,$16000 and $20000. Assume 50% tax and depreciation on straight line basis. What is the ARR.

Reference no: EM131435569

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Assume 50% tax and depreciation on straight line basis. : A Project will cost $40000. Its stream of earning before depreciation and taxes (EBDIT) during first year through five years will be $10000,$12000,$14000,$16000 and $20000. Assume 50% tax and depreciation on straight line basis. What is the ARR.

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Assume 50% tax and depreciation on straight line basis.

Reference no: EM131435569

Reference no: EM131435569

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