Choose either True or False for the statements below and explain the reasoning:
True or False: If money can be borrowed for 20% compounded annually and the marginal income tax rate is 40%, then it will be profitable to borrow the investment capital if your after-tax MARR is greater than 12%.
True or False: If the same amount of money is invested in something that can be expensed as in something that must be depreciated (and both provide the same annual returns) then, to maximize after-tax present worth, you should choose the investment that can be depreciated.
True or False: Effective tax rate is always less than marginal tax rate
True or False: Marginal tax rate is the only rate that can be used to conduct engineering economic analysis.