Question
Simple Corp. is considering introducing a new product that requires an immediate investment in manufacturing facilities of $200 000 which is with a residual value
Simple Corp. is considering introducing a new product that requires an immediate investment in manufacturing facilities of $200 000 which is with a residual value of $22 000 after 6 years. These facilities will require additional capital outlays of $45 000 each on the third and fourth years. Net returns on this investment are estimated to be $80 000 per year for each of the four years and then levels off at $50 000 until the project is terminated at the end of year 6. Determine the investments rate of return on (rounded to the nearest 2 decimal places).
** NO EXCEL PLEASE **
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