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 $47,000. Revenues are $83,000 in year 1, increasing by $1000 per year. A salvage value of $21,000 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 Add your answer
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 $47,000. Revenues are $83,000 in year 1, increasing by $1000 per year. A salvage value of $21,000 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 Add your answer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text: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 $47,000. Revenues are $83,000 in year 1, increasing by $1000 per year. A salvage value of $21,000
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
Add your answer
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