Consider a project with an initial investment of -$50,000 and a 5 year life. Project...

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Finance

Consider a project with an initial investment of -$50,000 and a 5 year life. Project inflows are $25,000 each year and project outflows are $13,000 each year. Depreciation is calculated on a straight line method. If the cash flow in Year 1 is $11,600, what is the tax rate?

20%

40%

35%

45%

25%

30%

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