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Barrel Corporation, which is subject to a 40% income tax rate, is considering a $444,000 asset that will result in the following over its four-year
Barrel Corporation, which is subject to a 40% income tax rate, is considering a $444,000 asset that will result in the following over its four-year life:
Average revenue: | $ | 944,000 | |
Average operating expenses (excluding depreciation): | $ | 794,000 | |
Average depreciation: | $ | 94,000 | |
The after-tax accounting rate of return on the initial investment is:
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