Determine the real rate of return of this project on an after-tax basis?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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 Determine the real rate of return of this project on an after-tax basis?

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Step 1

The after-tax real rate of return is the net monetary benefit of speculation subsequent to modifying for inflation and expense outcomes. This is a more solid pointer of the net earnings of a person in the wake of making good on annual charges and representing the rate of inflation.

Step 2

Every one of these factors will impact the advantages which a financial specialist gains, and should accordingly be represented. This can be contrasted and the gross rate of rate and nominal rate of return of an investment.

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