Superior Jig Co. has developed a new jig for which it expects net returns as follows. Year

Question:

Superior Jig Co. has developed a new jig for which it expects net returns as follows.
Year 1: …………………………………….. $8000
Years 2 to 6 inclusive: ………………….…. $12 000 per year
Years 7 to 10 inclusive: …………………….$6000 per year
The initial investment of $36 000 has a residual value of $9000 after 10 years. Compute the rate of return.