San Remo has a $4,000,000 asset investment and is subject to a 30% income tax rate. Cash inflows are expected to average $600,000 before tax over the next few years; in contrast, average income before tax is anticipated to be $500,000. The company's after-tax accounting rate of return is:

8.75%.

10.50%.

12.50%.

15.00%

None of these.

Answer rating: 100% (QA)

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