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Agdist Corporation distributes agricultural equipment. The board of directors is considering a proposal to establish a facility to manufacture an electronically controlled intelligent crop sprayer
Agdist Corporation distributes agricultural equipment. The board of directors is considering a proposal to establish a facility to manufacture an electronically controlled "intelligent" crop sprayer invented by a professor at a local university. This crop sprayer project would require an investment of $8 million in assets and would produce an annual after-tax net benefit of $2.5 million over a service life of nine years. All costs and benefits are included in these figures. When the project terminates, the net proceeds from the sale of the assets will be $1 million. Compute the rate of return of this project. Is this a good project at MARR-10%? The rate of return of this project is l )%. (Round to one decimal place.)
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