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Welsh Corporation's return on investment (ROI) on some new equipment was 20% using beginning-of-year net book value. The gross book value of the equipment is
Welsh Corporation's return on investment (ROI) on some new equipment was 20% using beginning-of-year net book value. The gross book value of the equipment is $650,000. Accumulated depreciation at the beginning of the year was $26,000. This represents one-half year's straight-line depreciation. What is the annual before-tax cash flow from the new equipment?
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