Question: Middlebury Maple Syrup is considering purchasing a storage facility for its syrup. If the initial cost of the facility is $159,000 with a salvage value

Middlebury Maple Syrup is considering purchasing a storage facility for its syrup. If the initial cost of the facility is $159,000 with a salvage value of $10,000, the facility has a before-tax average annual net cash flow of $15,000 and an annual depreciation of $7,900, what is the average rate of return on the facility? Assume a 40% tax rate and that Middlebury uses the average rate of return method to evaluate capital asset decisions

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