Question: A gas station owner is considering installing a gas pump. The necessary equipment is estimated to cost $100,000, and it will be depreciated over 5 years using the straight-line method (with zero estimated residual value at the end of 5 years). Cash revenues each year would be $40,000, and cash expenses $15,000. The Simple Rate of Return (SRR) would be:Immersive Reader

A. 25%

B. 5%

C. 20%

D. 15%