Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associated with the pilot test product line were as follows: first cost of $40,000 and annual costs of $18,000. Annual revenue was $37,000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product? The rate of return the company made on the product is 59 %.

Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associated with the pilot test product line were as follows: first cost of $40,000 and annual costs of $18,000. Annual revenue was $37,000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product? The rate of return the company made on the product is 59 %.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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