123 Systems located in Alabama expects a 9% after-tax rate of return on an equipment investment. The state tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required. A. 11.36% B. 13.80% C. 13% D. 14.51%

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Chapter1: Making Economics Decisions
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123 Systems located in Alabama expects a 9% after-tax rate of return on an equipment investment. The state tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required.

A. 11.36% B. 13.80% C. 13% D. 14.51%

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