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A Aa A. A 1 Normal 1 No Spac... Heading 1 Headi Paragraph Styles Q. A consulting engineer working on an economic analysis of a

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A Aa A. A 1 Normal 1 No Spac... Heading 1 Headi Paragraph Styles Q. A consulting engineer working on an economic analysis of a countermeasure found that the installation cos was estimated to be S 220,000 and the annual savings in crash reduction due the proposed countermeasure was $12,000 and the annual maintenance cost of keeping the countermeasure in effective use was estimated to be $2,500. The economic life of the countermeasure is estimated to he 20 years. Compute the discount rate (rate of return) that will break even, i.e.,NPV=0 in the 20 years economic life of the countermeasure

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