Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $126,000 with annual costs of $48,000. Revenues are $80,000 in year 1, increasing by $1000 per year. A salvage value of $20,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process? The internal rate of return made by the company, (in %) Round to the nearest two (2) decimal places

Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $126,000 with annual costs of $48,000. Revenues are $80,000 in year 1, increasing by $1000 per year. A salvage value of $20,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process? The internal rate of return made by the company, (in %) Round to the nearest two (2) decimal places

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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