Five years ago, Logocom made a $5 million investment in a new high-temperature material. The product was not well accepted afterthe first year on the market. However, when it was reintroduced 4 years later, It did sell well during the year. Major research funding tobroaden the applications has cost $15 million in year 5. Determine the rate of return for these net cash flows (in $1.000 units).YearNCF, $1000-5,0004,500421,500-15,000The rate of return is% per year.

The Rate of return can be calculated as

Answered: Five years ago, Logocom made a $…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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