Investment - Mulligan Corporation
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Mulligan Corporation, which is subject to a 30% income tax rate, is considering a $150,000 asset that will result in the following over its seven-year life:
Total revenue: $1,190,000
Total operating expenses (excluding depreciation): $770,000
Total depreciation: $150,000
The accounting rate of return on the initial investment is:
A. 16%
B. 18%
C. 26%
D. 28%
E. some other figure
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Solution Summary
The expert examines investment for Mulligan Corporations. The total operating expenses excluding depreciation is provided.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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