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Butch's Barbecue Thinks That Offering Delivery Will Increase Their Sales

Question 78

Multiple Choice

Butch's Barbecue thinks that offering delivery will increase their sales.Butch's is considering whether to purchase a used delivery truck costing $12,000.Additional net income from the delivery service will be $1,400 per year.The truck will last approximately 5 years.What is the unadjusted rate of return based on the average investment?


A) About 58.3%
B) About 11.7%
C) About 23.3%
D) About 857.1%

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