A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?
A. 12.07 %
B. 12.34 %
C. 12.67 %
D. 12.87 %
Answer: Option A
Related Questions on Engineering Economics
The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where
A. 8% is the rate of interest per year
B. Money is borrowed for n = 7 years
C. Both (A) and (B)
D. Neither (A) nor (B)
A. Sole proprietorship
B. Entrepreneurship
C. Partnership
D. Corporation
A. P 43,600.10
B. P 43,489.47
C. P 43,263.91
D. P 43,763.20
A. Architect/engineer
B. Construction manager
C. Owner himself/herself
D. Construction manager
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