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1. Donny Donruss has set up a corporation to buy and sell baseball cards. Mr. Donruss, the corporation's only shareholder, puts up $50,000 of his
1. Donny Donruss has set up a corporation to buy and sell baseball cards. Mr. Donruss, the corporation's only shareholder, puts up $50,000 of his savings to begin the business. Calculate the annual return to Mr. Donruss in each of the following two scenarios: a. The market for baseball cards goes on a winning streak, and his business produces a cash flow of $15,000 per year. b. The market for baseball cards takes a slide, and his business barely squeaks out a cash flow of $2,500 per year.
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