Compute the rate of return for Question 6.
In Question 6
A company is considering a project that will require a cost outlay of $30 000 per year for four years. At the end of the project, the company expects to salvage the physical assets for $30 000. The project is estimated to yield net returns of $60 000 in Year 4, $40 000 in Year 5, and $20 000 for each of the following five years. Alternative investments are available, yielding a rate of return of 14%. Compute the net present value of the project.