On December 19, 1998, about 1430 Eastern Standard Time, a Beech BE-76 Duchess, N42RR, was substantially damaged during the takeoff roll at Cincinnati Municipal-Lunken Field (LUK), Cincinnati, Ohio. The certificated flight instructor and private pilot were uninjured. Visual meteorological conditions prevailed at the time of the accident. A round robin instrument flight plan was filed for the instructional flight, which was conducted under 14 CFR Part 91. According to the flight instructor, he was giving instruction to the private pilot in anticipation of a multi-engine flight test. It had rained earlier, and the runway was still wet. The instructor gave the private pilot a simulated engine failure during the takeoff roll. He allowed the airplane to accelerate, and pulled back the mixture to the left engine at approximately 30 knots. The airplane veered quickly to the left, about 30 degrees. The private pilot did not retard both throttles immediately, so the flight instructor advanced the mixture on the left engine; however, the corrective action was too late, and the airplane departed the runway. The flight instructor reduced the power, and the brakes were applied. The airplane continued through the wet grass, then ran into an elevated asphalt driveway at 10 to 15 knots. The nose gear collapsed, and the airframe was bent.