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Marz Inc Made a $75,000 Cash Expenditure This Year (Year 0)

Question 49

Multiple Choice

Marz Inc. made a $75,000 cash expenditure this year (year 0) . Compute the after-tax cost if Marz must capitalize the expenditure and amortize it ratably over three years, beginning in year 0. Marz has a 30% marginal tax rate and uses a 7% discount rate.


A) $49,344
B) $51,269
C) $53,940
D) None of the above

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