2. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.
2. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

Transcribed Image Text:2. Switching to powder coating technology will reduce the emission of volatile organic carbons
(VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000
and savings of $80,000 per year. The salvage value 10 years from now is projected to be
$75,000. What rate of return will the firm make on this investment? Round your answer to the
nearest .01 percent.
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