You estimate the pre-tax return on capital, by year and on average, for the project. You also, estimate the after-tax return on capital, by year and on average, for the project. If the firm faced a cost of capital of 12%, should it take this project? Select one: a. Yes, if the after-tax ROC is greater than 12%b. Yes, if the pre-tax ROC is greater than 12%c. No, if the pre-tax ROC is less than 12%d. Two of the abovee. All of the above
You estimate the pre-tax return on capital, by year and on average, for the project. You also, estimate the
after-tax return on capital, by year and on average, for the project. If the firm faced a cost of capital of 12%, should it take this project?
Select one: a. Yes, if the after-tax ROC is greater than 12%b. Yes, if the pre-tax ROC is greater than 12%c. No, if the pre-tax ROC is less than 12%d. Two of the abovee. All of the above