A company that manufactures recreational pedal boats has approached Mike Cichanowski to ask it he would be interested in using Current Designs rotomold expertise and equipment to produce some of the pedal boat components More is intrigued by the idea and think it would be an interesting way of complementing the present product line. One of Mike's hesitations about the proposal is that the pedal boats are a different shape than the kayaks that Current Designs products. As a result, the company would need to buy an additional rotomoldoven in order to produce the pedal boat components This project clearly involves risks, and Mike wants to make sure that the returns justify the risks. In this case, since this is a new venture. Mike thinks that a 15% discount rate is appropriate to use to evaluate the project. Ar an internat Current Designs, Mike has asked you to prepare an initial evaluation of this proposal. To aid in your analysis, he has provided the following information and assumptions. 1 The new rotomold oven will have a cost of $301.000, a salvage value of 50, and an 8-year useful life Straight-line depreciation will be used. The projected revenues, costs, and results for each of the years of this project are as follows. 2. Sales 5204,800 tess Manufacturing costs $122.000 36,000 Depreciation Shipping and administrative costs 22.000 160,000 Income before income taxes 24,800 Income tax expense 10,800 Net Income $14,000 @chere to view PV tabli a) Compute the annual rate of return (Round answer to 2 decimal ploces 3 15.25%) Annual rate of return % eTextbook and Media Save for Attempts of 3 used Sumatra Using multiple attempts will impact your score 5% score reduction after attempt 2