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wel
2 years ago
8

A biotech company has an effective income tax rate of 40%. Recaptured depreciation is also taxed at the rate of 40%. The company

must choose one of the following mutually exclusive cryogenic freezers for its tissue samples. The after-tax MARR is 12% per year. Which freezer should be selected based on after-tax present worth?

Business
1 answer:
ArbitrLikvidat [17]2 years ago
7 0

Answer:

Freezer 2 is the better option because it has higher present worth.

Explanation:

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