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If Edward finds that his product qualifies for an investment credit of 25% of his project cost (equipment, building and working capital), which he can claim as income at the end of the first year for which he will have to pay taxes at the regular rate in the first year, would his decision change? Why? For calculating the IRR, take the year 0 cash flow as the total of the amounts invested in equipment, building and working capital.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91227847

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