Rate of Return

(c) (d) $300 every 6 months $400 every 6 months CASE STUDY DEVELOPING AND SELLING AN INNOVATIVE IDEA Background Three engineers who worked for Mitchell Engineering, a it was agreed that the system was ready to market and reliably company specializing in public housing development, went to lunch together several times a week. Over time they de- cided to work on solar energy production ideas. After weekend time over several years, they had designed and de- veloped a prototype of a low-cost, scalable solar energy plant for use in multifamily dwellings on the low end and medium- Information sized manufacturing facilities on the upper end: For residen- tial applications, the collector could be mounted along side a With a hefty bank loan and $200,000 of their own capital TV dish and be programmed to track the sun. The generator they were able to install demonstration sites in thre citis n and additional equipment are installed in a closet-sized area the sunbelt. Net cash flow after all expenses, loan repayment. in an apartment or on a floor for multiple-apartment The system serves as a supplement to the electricity provided by the local power company. After some 6 months of testing. state that an electricity bill in high-rises could be reduced by approximately 40% approximately 40% per month. This was great news for low- alot of income dwellers on government subsidy that are required to years, they had designed and depay their own utility bills. for multiple-apartment supply. and taxes for the first 4 years was acceptable: $55,000at te