An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity generating solar cells. The new material is expected to have a longer life, and it is believed to have a 40% efficiency rate, which is nearly twice that of standard silicon solar cells. The useful life of a telecommunications satellite could be extended from 10 to 15 years by using the new solar cells. What rate of return could be realized if an extra investment now of $930,000 would result in extra revenues of $450,000 in year 11, $500,000 in year 12, and amounts increasing by $50,000 per year through year 15? The rate of return that could be realized was %.

ENGR.ECONOMIC ANALYSIS
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An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity
generating solar cells. The new material is expected to have a longer life, and it is believed to have a 40% efficiency rate, which is
nearly twice that of standard silicon solar cells. The useful life of a telecommunications satellite could be extended from 10 to 15 years
by using the new solar cells. What rate of return could be realized if an extra investment now of $930,000 would result in extra
revenues of $450,000 in year 11, $500,000 in year 12, and amounts increasing by $50,000 per year through year 15?
The rate of return that could be realized was
%.
Transcribed Image Text:An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity generating solar cells. The new material is expected to have a longer life, and it is believed to have a 40% efficiency rate, which is nearly twice that of standard silicon solar cells. The useful life of a telecommunications satellite could be extended from 10 to 15 years by using the new solar cells. What rate of return could be realized if an extra investment now of $930,000 would result in extra revenues of $450,000 in year 11, $500,000 in year 12, and amounts increasing by $50,000 per year through year 15? The rate of return that could be realized was %.
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