. Consider the following case of Orange & Purple Transportation Inc.: Suppose Orange & Purple...
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. Consider the following case of Orange & Purple Transportation Inc.: Suppose Orange & Purple Transportation Inc. is considering a project that will require $400,000 in assets. The project is expected to generate yearly sales of $100,000. Cost of goods sold is expected to be $50,000 and depreciation $5,000, Common equity outstanding will be 10,000 shares. The company incurs a tax rate of 40%. If the project is financed using 100% equity capital, then Orange & Purple Transportation Inc's return on equity (ROE) on the project will b Please write your answer in percentage up to four decimal places. For example, 0.0910 (which is 9.1%) should be entered as 9.1000
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