Actual After-Tax Rate of Return. [Engineering Economics]

[0xCMD]

Greetings,

I'm trying to solve a 3 part problem which has the following questions:

a) Determine the rate of return before taxes.
After Solving: Answer: 21 %

b) If the effective income tax rate is 42 percent, what is the approximate after-tax rate of return?
After Solving: Answer: 8 %

c) What is the actual after-tax rate of return?
I don't really understand this question, I can't tell the difference between (approximate after-tax rate of return) and (actual after-tax rate of return)

Does anyone Know the difference?

thanks.
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[Redbelly98]

Welcome to Physics Forums.

I'm not sure either. Could you post:

• The full problem statement.
• The equations you used to get your answers.