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DON Corporation Is Making a Decision About a Project That

Question 4

Multiple Choice

DON Corporation is making a decision about a project that has an after-tax internal rate of return of 18%. If the company pays 30% corporate income tax rate what is the before-tax internal rate of return?


A) 12.6%
B) 18.0%
C) 22.4%
D) 25.7%
E) 60.0%

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