ent-player/index.html?launchid=aOccba8c-ba37-4139-b/ad-baeab39411 question 0/ 100 > In Question 1 of 1 View Policies Show Attempt History Current Attempt in Progress A company that manufactures recreational pedal boats has approached Mike Cichanowskito ask it he would be interested in using Current Designs rotomold expertise and equipment to produce some of the pedal boat components. Mike is intrigued by the idea and thinks 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 laks that Current Designs produces. As a result, the company would need to buy an additional rotomoldoven in order to produce the pedalboat 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 As an Intern at 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 $240,000, a salvage value of $0, and an B-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 $203,000 Less $134,000 Manufacturing costs Depreciation 31.000 Shipping and administrative costs 15.000 180 000 Income before income taxes 23.000 9,000 Income tax expense Net income 514000 Click here to view PV table la) Your Answer Correct Answer (Used) x Your wer is incorrect Compute the rate of return (Round answer to 2 decimal placeres 15.25%) Textbook Media Am od United Stem th Computer the perfundo dello 15.25 Pay period eurs Text Media Altarge thinam www ic) The case when the Idi