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Burlington Paper Goods is considering purchasing a new delivery truck. Burlington uses the average rate of return method to evaluate capital asset decisions. If the

Burlington Paper Goods is considering purchasing a new delivery truck. Burlington uses the average rate of return method to evaluate capital asset decisions. If the initial cost of the truck is $67,000 with a salvage value of $7,000, and it has a before tax average annual net cash flow of $30,000 and an annual depreciation of $15,000, what is the average rate of return on the truck? Assume a 35% tax rate.

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