Welsh Corporation's Return on Investment (ROI)on Some New Equipment Was

Multiple Choice

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 $250,000.Accumulated depreciation at the beginning of the year was $10,000.This represents one-half year's straight-line depreciation.What is the annual before-tax cash flow from the new equipment?

A) $68,000.
B) $60,000.
C) $48,000.
D) $20,000.