Explain what “equity” means as it relates to taxation.

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Explain what “equity” means as it relates to taxation.

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Years After-tax income R 1 200 000 2 500 000 3 300 000 4 400 000 5 700 000 6 300 000 If the average rate of return is 8,421%, then the original investment (rounded off to the nearest R1 000) was [1] R2 400 000. [2] R4 750 000. [3] R40 000. [4] R1 497 000. [5] none of the above.