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The Shamrock Company is contemplating building a new warehouse. The company estimates the building would cost $3,000,000 and generate annual operating cash inflow of $400,000

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The Shamrock Company is contemplating building a new warehouse. The company estimates the building would cost $3,000,000 and generate annual operating cash inflow of $400,000 for 12 years. At the end of its life, the building would have no value. The company uses a discount rate of 8%. Ignoring income taxes, what is this project's Simple Rate of Return? A. 5.0% B. 21.6% C. 13.3% D. 26.7% The Shamrock Company is contemplating building a new warehouse. The company estimates the building would cost $3,000,000 and generate annual operating cash inflow of $400,000 for 12 years. At the end of its life, the building would have no value. The company uses a discount rate of 8%. Ignoring income taxes, what is this project's Simple Rate of Return? A. 5.0% B. 21.6% C. 13.3% D. 26.7%

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