Question: A company is considering a project that will require a cost outlay of $30,000 per year for four years. At the end of the project,
A company is considering a project that will require a cost outlay of $30,000 per year for four years. At the end of the project, the company expects to salvage the physical assets for $30,000. The project is estimated to yield net returns of $60,000 in Year 4, $40,000 in Year 5, and $20,000 for each of the following five years. At 14%, the net present value for the project is $404. Compute the rate of return for the project. Choose the correct answer below. A. ROI = 12% B. 12% ROI < 14% C. ROI = 14% D. 14% ROI < 16% OE. ROI 16% OF. 16% ROI < 18% OG. ROI 18%
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