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35. Don Porter Trucking is considering purchase of a new asset. Its initial cost is $50,000 and it provides annual revenues of $19,000. Cash operating
35. Don Porter Trucking is considering purchase of a new asset. Its initial cost is $50,000 and it provides annual revenues of $19,000. Cash operating expenses are $10,000 per year. Straight-line depreciation will be $8,000 per year. What is the before-tax simple rate of return? a. 2.0% b. 2.5% c. 3.3% d. 18.0% e. 30.0%
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