A crude oil transport company is contemplating on the investment of purchasing a new oil tanker that costs 50 million. It is estimated that the tanker will bring in an annual revenue of 20 million for ten years after which it will have a salvage value of 1 million. The cost for operation and maintenance is estimated to be 400 thousand per year. Taxes and insurance will cost 5% of the first cost each year. If the company determined its MARR to be 25% and its WACC to be 20%, determine the following for this investment. a) Its Rate of Return (ROR). Is the investment justified or not? b) Its Net Equivalent Uniform Annual Worth (Net EUAW). c) Its Net Present Worth (Net PW). d) Its Net Future Worth (Net FW). e) Its Payback Period (PP). f) Its Internal Rate of Return (IRR). g) Its Benefit/Cost Ratio (B/C Ratio). h) Its External Rate of Return (ERR).

It should be per yer. Thank You.