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 $100O per year. A salvage value of $20,000was realized when the process was discontinued after 8 years. What rate of return did the company make on the process?The rate of return made by the company is%.

Over a given period, an investment's return on investment (RoR) is calculated as a percentage of the…

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 rate of return made by the company is %.

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 rate of return made by the company is %.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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