• Nu Engineering has the following costs related to a research project:
  • Research expenditures: $500,000
  • Revenue from new patents: $1,200,000
  • Tax rate: 35%

• Requirements:
  1. Calculate Nu Engineering's net research expenses after tax.
  2. Determine the return on investment (ROI) for the research expenditures.
  3. Calculate the net present value (NPV) of the research projects.
  4. Analyze the internal rate of return (IRR) for the research investments.
  5. Determine the profitability index for the research initiatives.