The firm you work for was presented with an opportunity to invest in a project. The following are the data on the project:

Initial investment required=$60,000,000 Salvage value after 10 years=$1,200,000 Gross income expected from the project=$23,000,000 / yr Operating Costs: Labor=$3,500,000/yr Materials licenses, insurance, etc.=$1,500,000/yr Fuel and other cost=$1,750,000/yr Maintenance Cost=$750,000/yr

The project is expected to operate for ten years. If your management expects to make 25% on its investment before taxes, would you recommend this project using the rate of return analysis?